Tag Archives: Petroyuan

Biden’s Middle East: Saudi Arabia Embraces China; Will They Topple the Dollar? By Judith Bergman

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.

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How a Hidden Parliamentary Session Revealed Trump’s True Motives in Iraq, by Whitney Webb

According to Iraq’s acting Prime Minister, Adel Abdul-Mahdi, Trump is trying to muscle Iraq into abandoning a lucrative oil deal with China. From Whitney Webb at mintpressnews.com:

The U.S. is adamant that its assassination of Qassem Soleimani and refusal to leave Iraq is about protecting Americans, but a little known Iraqi parliamentary session reveals how China increasingly strong ties to Baghdad may be shaping America’s new Mideast strategy.

Since the U.S. killed Iranian General Qassem Soleimani and Iraqi militia leader Abu Mahdi al-Muhandis earlier this month, the official narrative has held that their deaths were necessary to prevent a vague, yet allegedly imminent, threat of violence towards Americans, though President Trump has since claimed whether or not Soleimani or his Iraqi allies posed an imminent threat “doesn’t really matter.”

While the situation between Iran, Iraq and the U.S. appears to have de-escalated substantially, at least for now, it is worth revisiting the lead-up to the recent U.S.-Iraq/Iran tensions up to the Trump-mandated killing of Soleimani and Abu Mahdi al-Muhandis in order to understand one of the most overlooked yet relevant drivers behind Trump’s current policy with respect to Iraq: preventing China from expanding its foothold in the Middle East. Indeed, it has been alleged that even the timing of Soleimani’s assassination was directly related to his diplomatic role in Iraq and his push to help Iraq secure its oil independence, beginning with the implementation of a new massive oil deal with China.

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