Despite pressure from the U.S., China Persists in Purchasing Oil from Russia and Iran
In the ongoing US-China trade negotiations, a key point of contention has emerged: China's oil imports from Iran and Russia. The Chinese government has expressed its intent to maintain these energy supplies, citing strategic, economic, and sovereign reasons.
Gabriel Wildau, a managing director at consultancy Teneo, has expressed doubts about President Trump's threat of deploying 100% tariffs, while Tu Xinquan, director of the China Institute for WTO Studies, has stated that China will fight to the end if such tariffs are imposed.
China's resistance to halting oil purchases from Iran and Russia is primarily driven by its need for stable, affordable energy supplies. As the top importer of Iranian crude, China imports more than 1 million barrels per day, accounting for approximately 13.6% of China's oil imports in 2025. Russia, being China’s largest oil supplier, is also a strategic partner, with China being the second-largest buyer of Russian seaborne crude after India.
Chinese officials emphasize that energy import decisions are a sovereign matter and reject US coercion. They prefer to "firmly defend its sovereignty, security and development interests" rather than yield to US demands. Purchasing discounted oil from sanctioned countries like Iran and Russia helps China economically while strategically countering US efforts to isolate these countries financially.
The US aims to reduce funding for Russia's military by restricting oil sales, but China's continued purchases preserve strategic solidarity between Xi Jinping and Vladimir Putin. Sen. Lindsey Graham is pushing for sanctions and tariffs on Russia and its financial backers, with a bill authorizing tariffs as high as 500% on countries buying oil from Russia.
Despite the pressure, China remains resolute. Its Foreign Ministry has stated that coercion and pressure will not be effective, and that China will firmly defend its interests. Scott Kennedy, senior adviser at the Center for Strategic and International Studies, suggests Beijing may use oil purchases as a negotiating tool to extract more concessions from Trump.
The US and Chinese officials are negotiating a potential trade deal to avert tariffs. However, China was the only country that retaliated when Trump unveiled tariff plans in April. The trade negotiations, therefore, remain complex, with oil purchases serving as a critical leverage point for China.
Bessent, a US Treasury Secretary, acknowledged China's stance on oil purchases, stating that China takes its sovereignty seriously regarding oil purchases. The bill to impose sanctions on countries buying oil from Russia has 84 co-sponsors in the Senate, and a corresponding House version has been introduced with bipartisan support.
In summary, China's need for stable, affordable energy supplies, combined with a strong stance on sovereignty and strategic alignment with Russia and Iran, underpins its resistance to US demands to halt oil purchases in trade negotiations. The ongoing negotiations between the US and China promise to be intricate, with oil purchases serving as a significant factor.
- The Chinese government intends to maintain its oil imports from Iran and Russia, citing strategic, economic, and sovereign reasons, which are key points of contention in the US-China trade negotiations.
- As the top importer of Iranian crude, China imports more than 1 million barrels per day, making these imports a crucial part of China's economy.
- China's continued purchases of oil from sanctioned countries like Iran and Russia help the country economically while strategically countering US efforts to isolate these countries financially.
- The US aims to reduce funding for Russia's military by restricting oil sales, but China's purchases preserve strategic solidarity between Xi Jinping and Vladimir Putin.
- Oil purchases may serve as a negotiating tool for China in the ongoing US-China trade negotiations, as Beijing might use this leverage to extract more concessions from Trump to protect its interests.
