Amid renewed trade negotiations between the US and China, tensions have flared over Washington’s demand that Beijing cease purchasing oil from Iran and Russia. Following two days of talks in Stockholm, China responded defiantly, rejecting pressure from the US and insisting it will continue to safeguard its energy security based on national interests.
“Coercion and pressuring will not achieve anything. China will firmly defend its sovereignty, security and development interests,” China’s Foreign Ministry posted on X, responding to Washington’s threat of a 100 per cent tariff on Chinese goods if oil purchases continue.
Despite this flashpoint, both sides have projected cautious optimism about reaching a broader trade deal that could stabilize economic ties between the world’s two largest economies. However, China’s firm stance on energy sources signals its refusal to let foreign policy be dictated by external threats—especially under the Trump administration.
US Treasury Secretary Scott Bessent acknowledged China’s resolve, telling reporters that while the issue of Russian oil remains unresolved, the broader trade discussions are still on track. “The Chinese take their sovereignty very seriously,” Bessent said, noting that China would rather pay the threatened 100 per cent tariff than change course.
Trump administration officials have framed the oil issue as part of a broader effort to choke funding to Russia’s military during its war in Ukraine and to militant groups supported by Iran. Yet Beijing’s continued oil imports from both countries underline its strategic alignment and economic interests. A report from the US Energy Information Administration states that between 80 to 90 per cent of Iran’s oil exports go to China—amounting to over a million barrels daily.
Analysts believe Trump’s threats are likely bluster. Gabriel Wildau of Teneo noted that enforcing the full tariff threat could undo recent diplomatic progress. “It would probably kill any chance of a trade deal if Trump and Xi meet this fall,” he said.
Experts also highlight Beijing’s perception of inconsistencies in US foreign policy, arguing that China sees its support for Moscow as consistent and strategically beneficial. Danny Russel from the Asia Society Policy Institute emphasized that President Xi Jinping views Russian and Iranian oil as irreplaceable. “It is too important a strategic energy supply, and Beijing is buying it at fire-sale prices,” he said.
In April, China’s imports of Russian oil surged by 20 per cent over the previous month, reaching 1.3 million barrels per day—second only to India, which also faces US backlash. Trump recently announced a 25 per cent tariff on Indian goods, citing the country’s continued Russian oil purchases.
While trade negotiations may continue, China’s refusal to budge on oil imports underscores a deeper geopolitical divide—where energy security, strategic alliances, and sovereignty now play a larger role than tariff threats.
