One week ago, PressTv ran an article about a Chinese refiner that stopped buying US crude. ShanDong Dongming, China’s largest independent oil refinery announced the move was due to the trade dispute between China and the US. The refinery stated that they would contract with the Iranian to obtain their crude oil.
In May, Trump announced the US’s withdrawal of the Iran agreement much to the chagrin of the other members to the agreement. Trump forecasted that Iran’s oil sales would hit zero by November 4. The move of ShanDong Dongming made sense as China’s retaliation of the US’s tariffs and it would stymie Trump’s plan to zero out Iran’s oil exports.
Reported by halturnerradioshow.com, on Saturday night Beijing will halt its petrochemical purchases (chemicals made from oil) from Iran. Supposedly because China does not want to be one of the sides in the war. It will make future oil purchases from Saudi Arabia.
It is rumored that a statement from China will be issued. Here is the alleged release.
“China is not like the United States and Russia; it has no aggressive foreign policy; it does not want to be one of the sides of the war; it avoids the policies of the axes in our region. However, it is a large state with huge interests in the region; one of the interests of China in the Middle East is oil.
The Middle East region is the vital artery of China, and its subjection to regional or international governments and the chaos of terrorist organizations is a source of concern for Beijing. China has an important role to play, although it does not have a specific position, and it strives as an economic power to protect its interests without resorting to military power. Its policies are pragmatic, and during the US-Iran controversy, Beijing did not help Washington, it did not withdraw from the nuclear deal and did not accept Iran’s sanctions. But at the same time, China has decided to abandon Iran as a major source of its petrochemical purchases and move toward Saudi Arabia. This could be a painful blow to Tehran.
The strategic proximity between Saudi Arabia and China is not accidental and is the result of the actions of Saudi politicians in relation to China. Last year, Malik Salman’s trip to Beijing was an important step during which extensive cooperation agreements between Beijing and Riyadh were concluded.
In addition, the visit of the Chinese president to the Emirates was an exceptional journey. This is while China has good relations with Kuwait. Economics is the power of the Gulf states and the way to the intellect and heart of China; a partnership without other obligations. China is currently moving towards Saudi Arabia and the Arab Gulf states and has abandoned Iran’s oil. In the past, Iran was the first supplier of Chinese oil. The same thing has provoked the rage of Tehran and has led the authorities to engage in reading readings with a different logic.
In this context, it can be said that China has become an important partner for Saudi Arabia, irrespective of Iran’s oil, and this can be aligned with its enormous economic plan.”
This report makes mention of solidifying ties with the Saudis but it makes no mention of the diametrically opposed switch on China’s position with Iran. It also makes mention of a war. There is not sufficient clues to elicit a concrete conclusion. Is there a war coming in the near future, if so, what countries will be involved. Is this a ploy to ensure trade ties between the US and China? It is a fact that the US is a major market for goods made in China and economically the US would buy more than Iran. Regarding Saudi Arabia, China as well as Russia have been in talks with the Saudis to strengthen trade relationships. Saudis are partners with the US with the petrodollar, so if China trying to gain support with Saudi Arabia to ultimately pull the plug on the US dollar’s reserve status?
Iran has stated that “If Iran cannot sell its oil from the Gulf Region, then NO ONE will sell their oil either”. In the past as well as currently, Iran has made threats to shut down the Strait of Hormuz. As you can see from the map, this is entirely possible and the Strait closure will certainly affect the transportation of oil from the OPEC countries. If this occurs, it will be shock to oil prices as well as the global economy. It will also be a strong impetus to the start of a war.