Chinese President Xi Jinping urged the Arab leaders to trade oil and gas with China in yuan. If this strategy materialises, it will be a big blow to the US dollar and pave way for the global expansion of Chinese currency.
Chinese President stated this last week in Riyadh where Crown Prince Mohammed bin Salman hosted two Arab summits with the Chinese leader to initiate a new milestone in Arab-China bilateral ties.
The shift from dollar to Chinese yuan in both countries energy deals is deemed necessary amid growing weaponization of the dollar-dominated financial system,.
This approach will also end monopoly of the US dollar in the global oil market.
Being the world’s biggest oil exporter and consumer, Saudi Arabia and China conveyed non-interference messages during Xi’s visit at a time when Saudi Arabia’s ties with the United States has been tested over human rights, energy issues, and Russia.
China has been trying to grow its penetration in West Asia, and struggling to replace the dollar in the global energy market.
China has also expanded energy links with Russia and Iran, as it sees Russia as a major power with a vast economic, defense, military, and technological potential. Iran is also a big economically developed country, which has made huge progress in its defense industry despite the US-led western sanctions.
A possible coalition of East nations including Iran, Russia, China, and Saudi Arabia would have harsh consequences for the West and especially for the U.S.