US President Donald Trump’s latest executive order enabling the United States to impose tariffs on any country that imports oil from Venezuela poses a dilemma for China, analysts said.
China now faces a tough decision: either renounce Venezuelan oil – dealing a heavy blow to its closest ally in the Americas – or face additional duties on all Chinese exports to the US.
But some believe Beijing may view the US move as a gambit aimed at gaining an edge in negotiations over a wider deal.
Although China could replace the deliveries from Venezuela – which are estimated to make up less than 1 per cent of its total oil imports in volume terms – giving up on the impoverished, left-leaning South American country would soil a strong diplomatic relationship, analysts said.
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