🛢️ Beijing dares Washington: defiant oil pact with Russia and Iran pushes $100B trade deal to the edge

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Tejaswini Deshmukh
Tejaswini Deshmukh
Tejaswini Deshmukh is the contributing editor of RegTech Times, specializing in defense, regulations and technologies. She analyzes military innovations, cybersecurity threats, and geopolitical risks shaping national security. With a Master’s from Pune University, she closely tracks defense policies, sanctions, and enforcement actions. She is also a Certified Sanctions Screening Expert. Her work highlights regulatory challenges in defense technology and global security frameworks. Tejaswini provides sharp insights into emerging threats and compliance in the defense sector.

Tensions rise over energy in high-stakes US-China trade talks

Trade talks between the United States and China have hit a serious roadblock. The main point of tension is China’s decision to keep buying oil from Iran and Russia. The US wants China to stop these oil imports. But China is refusing, saying it needs to protect its own energy needs and national interests.

The disagreement came after two days of trade negotiations held in Stockholm. While both sides want to avoid more conflict, China stood firm. In a strong message posted online, China’s Foreign Ministry said, “China will always ensure its energy supply in ways that serve our national interests.” The ministry also warned the US against using pressure or threats, saying such tactics will not work.

The US has responded by threatening to place a 100% tariff on certain Chinese goods. Tariffs are taxes placed on goods brought from another country. If this happens, it could make Chinese products much more expensive in the US, hurting trade between the two countries.

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Despite these issues, officials from both sides say they are still hopeful about finding a solution. They agree that it’s important to maintain strong trade ties between the two biggest economies in the world.

China stands firm on oil from Russia and Iran

The United States wants to limit oil sales from Russia and Iran. This is because the US believes these countries use the money from oil sales to fund military actions. Russia is still involved in the war against Ukraine, and Iran is said to support armed groups in the Middle East. By cutting down their oil income, the US hopes to reduce these activities.

But China is not agreeing to these demands. China says it will continue to buy oil from wherever it chooses. This includes oil from both Iran and Russia. The country sees this as a key part of keeping its economy and energy supply stable.

China’s oil imports from Iran are significant. Reports show that China buys more than one million barrels of Iranian oil every day. China is also one of the biggest buyers of Russian oil, only behind India.

This is not the first time China has resisted US pressure. Earlier this year, when the US announced a broad plan to raise tariffs on many imports, China was the only country that pushed back strongly. At the time, Chinese officials said they would “fight to the end” if the US went forward with those plans.

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Tariff threat raises fears of deal collapse

As talks continue, the US has warned it could impose a massive 100% tariff on some Chinese imports. This would double the price of certain goods made in China and sold in the US. Experts worry that such a move could damage trade and slow down progress toward a deal.

While the US says it does not want to interfere with China’s right to make its own decisions, it also insists that energy choices have global impacts. American officials say the goal is to encourage responsible trade practices that don’t support conflicts or harm global peace.

Still, many believe that threatening such high tariffs could destroy any progress made in the talks so far. Some trade watchers think China may be using its firm stance to gain stronger terms in the deal.

Behind the scenes, the talks are continuing, but the mood is tense. With both countries holding strong positions, the future of the trade agreement remains uncertain. The discussions are now at a very delicate stage, and any wrong move could cause talks to break down completely.

The energy issue has now become the biggest challenge in these trade talks. It shows how complex and sensitive the US-China relationship is—especially when national interests, global politics, and economic decisions are all closely tied together.

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