- Xi Jinping told Trump at the Beijing summit that China wants to purchase more U.S. oil and gas to reduce its dependence on Middle East supply routes, per a White House official.
- Xi also said he opposes Iran’s threats to charge ships a toll for Hormuz passage; both leaders agreed the strait must remain open for the free flow of energy.
- U.S.-China energy trade effectively halted last year after Beijing levied tariffs on American oil and LNG in retaliation for Trump’s sweeping tariffs on Chinese goods.
- Iran’s closure of Hormuz has disrupted roughly a fifth of global oil and LNG exports, with the U.S. now running its own blockade — though a Chinese supertanker appeared to pass through safely Thursday.
What Happened?
On the sidelines of the Trump-Xi Beijing summit, a White House official disclosed that Xi Jinping expressed interest in buying more U.S. oil and gas to reduce China’s vulnerability to Middle East supply disruptions — and that Xi explicitly opposes Iran’s proposal to charge ships a toll for Strait of Hormuz passage. The disclosure points to a potential energy trade opening buried within the broader summit agenda. China’s own readout of the meeting listed only “the Middle East” as a topic, omitting specific energy details. The development is notable because U.S.-China energy trade ground to a near-halt last year after Beijing imposed retaliatory tariffs on American oil and LNG following Trump’s broad tariff offensive against Chinese goods.
Why It Matters?
The Hormuz crisis has been the dominant force in global energy markets in 2026, disrupting roughly 20% of world oil and LNG exports and driving prices sharply higher. China, the world’s largest crude and gas importer, has enormous strategic interest in reopening the waterway — and the U.S., the world’s largest producer, has something China needs. A resumption of U.S.-China energy trade would serve both sides: it gives Trump a headline trade win and reduces the bilateral deficit, while giving Beijing a supply diversification away from the volatile Persian Gulf. The alignment on Hormuz also suggests limited but real common ground between Washington and Beijing on the Iran conflict.
What’s Next?
Watch for any formal announcement of U.S. oil or LNG purchase agreements as the summit wraps Friday — agricultural and aerospace deals were already expected, and energy could be added to the list. The harder question is whether Xi’s stated interest in more U.S. energy translates into actual contract flows, which would require unwinding last year’s retaliatory tariffs on American commodities. Meanwhile, the Hormuz situation remains fluid: a Chinese supertanker appeared to pass through the U.S. blockade Thursday without incident, and more vessels are testing the corridor — raising questions about how long Washington can maintain an effective closure.
Source: Bloomberg
