The potential move by Saudi Arabia to sell oil to China in Chinese currency is raising concerns about its impact on Angola’s oil exports, warns Daniel Fung Wah-kin, the President of the United Nations Foundation for Peace and Development.
He expressed these concerns during a seminar commemorating the 10th anniversary of the ‘One Belt, One Road’ initiative in Hong Kong.
Fung explained that in the past, China’s significant oil purchases from Angola were largely due to Saudi Arabia’s close ties with the United States.
However, recent data shows that Angola has slipped to being only the ninth main oil supplier to China in the first half of 2023. Russia, Saudi Arabia, and Brazil currently top the list of China’s oil suppliers.
The Chinese General Administration of Customs reported a notable 49% increase in Brazilian oil exports to China in the first half of 2023 compared to the previous year.
This growth aligns with the global sentiment of reducing the dominance of the U.S. dollar in international trade.
China’s increasing preference for cross-border transactions in its currency over the U.S. dollar further underscores the shift in global trade dynamics.
