Beijing [China], September 12: Just as Chinese Premier Li Qiang visited, Saudi Arabia announced its intention to use the yuan as a means of payment for oil exports to China.
For China , this move by Saudi Arabia is something that has been wanted for a long time. Thanks to that, the yuan has increased its prestige, trustworthiness and value on the world stage . Internationalizing the yuan is a major policy that Beijing has pursued for many years. The direct consequence of this is de-dollarization, reducing the dependence of China's trade on the USD.
For Saudi Arabia , this is a bold move. China is an important partner of the kingdom, but the US is also a traditional strategic ally. Saudi Arabia needs to promote cooperation and strategic partnership with China to implement a development strategy based on gradually reducing dependence on oil and gas exploitation and export. Saudi Arabia is aware that switching to the Chinese yuan will cause many problems with the US. But if it wants to gain more and bind China tightly to the cooperative relationship, Saudi Arabia must offer a truly sumptuous feast. Washington may be upset, but because Saudi Arabia is so important to the US in terms of geopolitics, the problems will eventually be resolved satisfactorily.
For the US, this is a bitter fruit, causing many disadvantages.
Source: Thanh Nien Newspaper