BEIJING: Chinese President Xi Jinping expressed interest in buying more US oil to reduce China’s dependence on the Strait of Hormuz during a leadership summit with President Donald Trump, according to a White House readout of the meeting published on Thursday (May 14).
The readout also said the two leaders agreed that the Strait of Hormuz must remain open to support the free flow of energy and Xi opposed militarisation of the strait and any tolls for its use.
There was no mention of oil purchases in any of the Chinese summaries of the meeting published by state media. China’s foreign ministry did not immediately respond to a request for comment.
Trump and Xi met for several hours on May 14 on the first day of a two-day summit which Chinese state media said would set a new course for relations between the countries.
Chinese purchases of US energy and agricultural products have been flagged as possible parts of a deal, although no concrete details have been unveiled yet.
China has not imported any US oil since May 2025 because of 20 per cent tariffs imposed during the trade war and the removal of those duties would likely be a prerequisite to any large-scale resumption of purchases.
Even with the search for Hormuz-free alternatives, a 20 per cent tariff still makes US light sweet crude commercially uncompetitive versus other available grades, said Emma Li, an analyst at the ship-tracking firm Vortexa.
However, even at its peak, the US has never been a major source of crude for the world’s largest oil importer.
Imports of US oil peaked at about 395,000 barrels per day (bpd) in 2020, accounting for just under 4 per cent of China’s total imports.
In 2024, before Trump returned to office, that had fallen to 193,000 bpd, worth US$6 billion (S$7.6 billion).
The chairman of state-owned oil major CNPC, which has long-term contracts with US liquefied natural gas producers, is expected to be a guest at a banquet in Beijing on May 14 for the US delegation.
Reuters previously reported that the US and China are expected to move towards a trade mechanism for non-sensitive goods this week, with each side possibly identifying some US$30 billion worth of goods on which they could reduce tariffs. - Reuters
