Saudi Arabia's high-level visit to China, the sound of "petroyuan" sounded, United States became more and more unable to sit still, Harris confessed, will not show mercy to China's subordinates, at the same time, Trump also released cruel words, do not use the dollar, 100% tariffs. What happened to Saudi Arabia's high-level visit to China? What exactly did Harris and Trump say?
Recently, Saudi Arabia's Minister of Industry and Mineral Resources Hurayev embarked on a week-long visit to China, with the aim of seeking more cooperation with Chinese companies in areas such as automotive and automation. Saudi Arabia is interested in Chinese products such as electric vehicles, C919 airliners and renewable energy infrastructure, and wants to cooperate with Chinese companies from the metals, pharmaceutical, smart city, robotics and renewable energy sectors. In addition, Huraev also said in an interview with the media that Saudi Arabia is willing to "try new things" and is "open" to new ideas, including the use of the yuan in the settlement of cross-border crude oil transactions. This also made the voice of "petroyuan" sound again and aroused the attention of the outside world. It is undeniable that China is expanding the influence of the renminbi in international trade more extensively, and if the renminbi can be used more widely in the settlement of cross-border crude oil transactions, it will inevitably lead to further internationalization of the renminbi.
In November last year, China and Saudi Arabia signed a bilateral local currency swap agreement with a swap scale of 50 billion yuan/26 billion Saudi riyals, which is valid for three years and can be extended by mutual agreement. This is also a milestone in the financial cooperation between China and Saudi Arabia. As the economic relationship between China and Saudi Arabia deepens, it is not impossible to promote the use of the renminbi in oil procurement. According to data from the Ministry of Industry and Mineral Resources of Saudi Arabia, China is currently Saudi Arabia's largest trading partner, with bilateral trade exceeding $100 billion in 2023. According to Chinese data, from January to July this year, China's total exports to Saudi Arabia amounted to US$27.55 billion, an increase of nearly 12% compared with the same period last year. In this context, with the further deepening of cooperation between China and Saudi Arabia, the use of the renminbi is indispensable.
Of course, the internationalization of the renminbi will also challenge the ubiquitous US dollar in the global commodity market. United States naturally won't be able to sit still. For dealing with the renminbi, the Fed forced Iraq to temporarily stop using the renminbi for direct trade settlements. Kadhimi, a member of the Finance Committee of the Iraq Parliament, has revealed that the Fed has asked Iraq to stop using the yuan for transactions on the grounds of so-called "irregularities and certain problems" in the transaction. In addition, United States vice president and Democratic presidential candidate Harris has also made it clear that she will not show mercy to China. She also pledged that if she wins this year's United States presidential election, she will ensure that "the winner of the 21st century is United States, not China." ”
Compared with Harris's "implicit" expression, United States Republican presidential candidate, former President Trump's words are more direct, on the 7th, Trump "let go" that he would make those countries that no longer use the dollar pay a high price and impose 100% tariffs on them. Although Trump did not name specific countries that want to impose tariffs, some media pointed out that the five BRICS countries of China, India, Brazil, Russia and South Africa discussed de-dollarization at a summit last August, and it is not ruled out that the above five countries are all under Trump's consideration.
However, having said that, the establishment of alternative settlement schemes to the US dollar is becoming a "fad" for regional organizations. In addition to the five BRICS countries, the SCO, the Eurasian Economic Union, ASEAN, the African Union, and the Arab League have all mentioned it. Originally, the US dollar, as the most important currency in the world today, was deliberately used as a weapon to harvest global wealth United States did not know how to cherish it. To put it bluntly, this is all the result of United States's own fault. Suppressing the renminbi will not solve the global "de-dollarization" at all, but will only further deepen the international community's distrust of the dollar.