The Middle East is playing the U.S. off against China and the dollar against the yuan. From Judith Bergman at gatestoneinstitute.org:
- If Saudi Arabia were to break the tradition of pricing its oil in US dollars, as it is contemplating doing, others could well start to price oil in Chinese yuan or other currencies — negatively affecting the US dollar’s status and potentially the entire US economy.
- “China must brace for a full-blown escalation of the struggle with the United States and prepare to gradually decouple the Chinese yuan from the US dollar.” — Zhou Li, former deputy director of the Communist Party’s International Liaison Department, South China Morning Post, July 5, 2020.
- That Saudi Arabia now seems to be seriously considering selling its oil in yuan signifies the extent to which the Biden administration’s Middle East policies have left countries such as Saudi Arabia hedging their bets on China, as the ascendant power in the Middle East. China, on the other hand, is simply taking advantage of the current US administration’s deprioritization of the region and its alienation of strategic US allies such as Saudi Arabia.