Talks between Saudi Arabia and China to sell oil in yuan instead of dollars would be another “potentially big loss” for the United States due to the Joe Biden administration’s disdain for its strategic ally.
According to an editorial in the Wall Street Journal. That in 1974, Saudi Arabia pledged to trade oil in US currency in exchange for security guarantees from the United States. However, the current administration in Washington has undermined these agreements at every turn, and the Saudis, it seems, are tired of it, the newspaper wrote.
As an example, the author of the article cites the US decision to stop supporting the war against the Houthis in Yemen, whom the US is helping. The White House administration also removed the Houthis’ terrorist designation, after which Washington postponed the planned arms sale to Riyadh.
“This was a real slap in the face in security, and the situation was only resolved at the end of last year,” he wrote in the Wall Street Journal.
In Riyadh, too, they watch with “horror” President Biden agreeing to a new deal on Iran’s nuclear program, providing Tehran with resources.
At the same time, Beijing, according to the Wall Street Journal, is happy to have the opportunity to fill the void that has formed, and if it succeeds in the negotiations, it can reap significant benefits. The journalists believed that the mistakes in relations with Saudi Arabia showed the flaws of Biden’s version of the “virtuous liberal international.”
Earlier, the Wall Street Journal wrote that the world’s largest oil importer, China and Saudi Arabia, are discussing the transition to yuan settlements for oil transactions.
Supplies to China provide a quarter of all oil exports from Saudi Arabia, and the conversion of payments into the Chinese national currency will allow China to increase the yuan’s share in international settlements.
For the United States, this threatens the status of the dollar and demonstrates the rapprochement of Saudi Arabia with partners in Asia.