Conventional wisdom says there are no winners in trade wars. But the latest salvo in the US-China dispute could mark a partial victory for both sides. Beijing has shelved plans to tax US crude imports in its retaliation to the latest round of US tarifs on Chinese goods. It is an unexpected but rational move. Dropping crude from the commodities it previously identifed as a target in its tit for tat with the US will ease the short-term threat to Chinese imports at a time of disruption from other major suppliers. Venezuelan output continues to decline amid economic and political upheaval. And US sanctions on Iranian oil exports are looming large. The US, Venezuela and Iran combined accounted for roughly 1.4mn b/d of Chinese crude imports in the frst quarter.
展开▼
