[Asia Economy New York=Special Correspondent Joselgina] Chinese President Xi Jinping, who is visiting Saudi Arabia, expressed his intention on the 9th (local time) to implement yuan settlement for oil and gas imports during a meeting with leaders of Arab countries in the Gulf region.
According to China’s state-run CCTV and major foreign media, President Xi mentioned this during his keynote speech at the China-Gulf Cooperation Council (GCC) Summit held in Riyadh, Saudi Arabia, referring to the cooperation issues to be focused on over the next 3 to 5 years.
President Xi said, "China will continue to expand imports of crude oil and liquefied natural gas from GCC countries (Saudi Arabia, UAE, Kuwait, Qatar, Oman, Bahrain), strengthen cooperation in oil and gas development and clean low-carbon energy technologies, and use the yuan for oil and gas trade." He also added that the "Shanghai Petroleum and Gas Exchange" would be fully utilized as a platform for yuan settlement.
If yuan is used for oil and gas trade settlements, it is analyzed that this could serve as a bypass channel even if the West, including the United States, imposes restrictions on energy supplies to China.
In particular, President Xi appears to be making efforts to secure energy import routes in preparation for contingencies such as a Taiwan emergency during this visit to Saudi Arabia.
He emphasized, "China will continuously import large quantities of oil from GCC countries and expand liquefied natural gas imports," and "will firmly support GCC countries in maintaining their own security." Furthermore, China and the Gulf countries agreed to establish a peaceful nuclear technology forum and jointly build a China-Gulf nuclear security demonstration center to foster talent in peaceful nuclear use and nuclear technology fields in GCC countries.
President Xi met throughout the day with countries of the broad Arab League (AL) region, covering the Gulf area, the Levant (currently Syria, Lebanon, Iraq), and Africa. In addition to the first China-Arab Summit, he held one-on-one meetings with the leaders of Tunisia, Iraq, and Somalia.
Saudi Crown Prince Mohammed bin Salman described the China-GCC Summit as "a historic new era" in relations with China. President Xi responded, "Standing at the crossroads of history, we must renew the tradition of friendship between China and the GCC." Crown Prince bin Salman also mentioned that China and the Gulf countries are discussing the possibility of establishing a common Free Trade Agreement (FTA) zone.
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