Trade Talks in Stockholm
Chinese and U.S. negotiators met in Stockholm for two days of talks that aimed to ease tensions over tariffs and trade rules. Washington pressed Beijing to end purchases of Russian and Iranian oil or face a 100 percent tariff on Chinese goods.
China’s Foreign Ministry spokesman said that Beijing will always secure energy in ways that serve its national interest and that threats will not force a change. The talks ended with no shift in China’s stance and highlighted the gap between U.S. sanctions policy and China’s energy plans.
China’s Energy Needs and Costs
China relies heavily on Russian and Iranian oil to meet its huge demand for fuel. U.S. Energy Information Administration data show that Chinese refineries take in more than one million barrels of oil each day from Iran and about 1.3 million barrels a day from Russia, making these two countries crucial suppliers for Beijing.
Chinese buyers can pay lower rates for this oil, which helps keep costs down for manufacturers and transport firms. Cutting off those supplies would raise prices at home and risk shortages in a hot summer when demand for power climbs.
U.S. Tariff Threats and Responses
U.S. Treasury Secretary Scott Bessent said he understands China’s need to guard its energy supply but warned that the United States may impose full tariffs if Beijing does not comply. He called the Chinese negotiators firm but said there is still a chance to reach a broader deal on other trade issues.
Some experts doubt that Washington will actually follow through on a 100 percent tariff threat, as such a move could stall all progress and hurt U.S. exporters who sell to China. Congress has floated bills that would allow even higher tariffs on countries that buy Russian energy, but no vote has taken place yet.
Wider Implications for Global Trade
The U.S. effort to curb Russian and Iranian oil exports also affects other buyers, such as India. New Delhi has already paused some Russian oil purchases after facing its own threat of a 25 percent tariff. If the U.S. enforces broader penalties, other Asian and European importers may have to choose between paying fines or seeking new suppliers in the Gulf and Africa. For China, shifting away from its current partners would take time and raise costs right when it wants to support economic growth.
Personal Analysis
I think China’s stand shows how energy needs can outweigh political pressure. The gap between Washington’s sanctions drive and Beijing’s demand for cheap oil will not close soon. Trade talks may cover many areas, but core issues like energy supply often stay apart from broader deals. Both sides will need to find a way to move forward without forcing the other to give in on a matter linked to national security and long-term planning.
Sources: reuters.com
