China yields to US oil market power

If the U.S. is about to engage in a trade war with China, the Middle Kingdom has just signaled that it wants a limited war by exempting a major (and growing) U.S. export to China: crude oil. The Wall Street Journal reported: As China made good on its threat to impose 25% tariffs on $16 billion worth of U.S. imports, one big-ticket item originally on its hit list was conspicuously missing: crude oil. Oil had been one of a slate of targets China listed in June for tariffs to counter those the Trump administration threatened on Chinese imports.  The gambit jeopardized a budding relationship: Over the past two years China has become the biggest buyer of U.S. crude-oil exports, last year taking a fifth of the total. But oil was off Wednesday's final list.  The reason is quite simple: China desperately needs to import oil, and the U.S. is the fastest growing source of crude oil exports on world markets, including...(Read Full Post)