Trump claims China to buy US oil as Xi summit concludes
Markets rally on trade truce hopes and chip sales approval, but structural barriers remain as Hormuz crisis looms
US President Donald Trump told Fox News that China intends to purchase American oil to satisfy its "insatiable appetite," a statement released as he and Chinese President Xi Jinping prepared to meet on Friday to formally conclude a two-day summit. The declaration arrives amid a broader diplomatic effort to stabilise relations, though the outcome is viewed by observers as a modest extension of a one-year trade truce rather than a full revitalisation of bilateral ties.
The summit, which commenced in Beijing on 14 May with Trump accompanied by a delegation of major technology executives, has been characterised by diplomatic pageantry and dealmaking. The two leaders are scheduled to meet on Friday to close the event, which covers trade, artificial intelligence, and tensions in the Strait of Hormuz.
Market reactions during the summit have been positive, with US stock indices rising on Thursday. The Dow Jones Industrial Average gained 0.8 per cent, the S&P 500 rose 0.3 per cent, and the Nasdaq Composite climbed 0.2 per cent. Nvidia shares surged more than 2 per cent following news that the US approved H200 chip sales to Chinese firms.
The diplomatic push occurs against the backdrop of an escalating crisis in the Strait of Hormuz, which has triggered an oil supply shock and raised concerns about energy markets. Allies of the US president are placing hopes on President Xi to help defuse the situation, which analysts suggest could threaten domestic political prospects in the upcoming midterm elections.
While the claim regarding oil purchases highlights a potential shift in energy trade flows, the actual implementation and volume of any US oil purchases by China remain unconfirmed. The statement is currently a declaration of intent by the US President, with the specific outcomes of the Friday meeting yet to be determined.
