.jpg)
3 hours ago
2
Article content
(Bloomberg) — Ukraine and its allies have called on Donald Trump to pressure Xi Jinping over China’s support for Russia. Trump’s meeting with Xi later Thursday will be a major test of just how ready the US president is to get tough with Vladimir Putin.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
A week after announcing sanctions on two major Russian oil companies, Trump has a chance to lean on China to curb purchases of Russian oil and deliver a blow to crucial energy revenues funding Moscow’s war in Ukraine. Trump has said he’ll raise Chinese oil buying with Xi as part of his renewed bid to end the fighting.
Article content
Article content
Article content
But applying significant pressure on Chinese buyers of Russian oil could spur retaliation from Beijing and likely ranks below economic priorities in the high-profile talks such as his efforts to secure a broader trade deal with the world’s second-biggest economy.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
“Trump likely doesn’t want to do that, given the delicate trade talks that are underway,” said Chris Kennedy, a senior geo-economics analyst at Bloomberg Economics. “In an escalation scenario, China would probably pull multiple levers.”
Article content
China is the single-largest buyer of Russian crude and has been a vital lifeline for Moscow’s energy industry as Putin’s grinding war in Ukraine prompted rounds of western sanctions. While China has maintained it does not recognize unilateral US restrictions, its larger companies are wary of getting tangled in secondary sanctions and fear losing access to US financial markets.
Article content
Still, the Xi meeting offers Trump a chance to reinvigorate the Ukraine peace talks just one week after the White House blacklisted Russian oil giants Rosneft PJSC and Lukoil PJSC in its first major sanctions on Russia since Trump returned to office — cheering Europeans and Ukrainians who had long called for more US pressure on Moscow.
Article content
Article content
The challenge for Trump is that for the sanctions to have any impact, they will need to be enforced. And enforcing them will mean punishing the main buyers — China and India.
Article content
“It’s always in the implementation — they get to choose whether they’re going to apply it,” Senator Chris Van Hollen, a Maryland Democrat, told an audience at the Council on Foreign Relations this week. “It will depend entirely on whether they’re serious about implementation.”
Article content
Trump’s new sanctions have already spooked big players in both countries. The US could increase the pain for Xi by targeting major Chinese oil refiners and trading firms, going after the so-called shadow fleet carrying Russian crude to foreign markets, or by hitting Chinese banks handling the transactions. Washington has taken some similar measures in efforts to target Iranian oil exports.
Article content
Unlike some smaller economies pressured by Trump in the past, it’s not easy to exert leverage over China without incurring steep costs. Beijing has already deployed its rare earth dominance to retaliate against Trump’s tariffs and could easily do so again.
English (US)