President Trump announced that China has agreed to purchase U.S. oil, citing the country’s substantial energy demand. This agreement, alongside discussions on Iran and the Strait of Hormuz, emerged from the summit between U.S. and Chinese leaders. The deal comes despite a significant recent drop in U.S. oil exports to China.
In a significant development emerging from the ongoing bilateral summit, U.S. President Donald Trump revealed that China has agreed to purchase American oil, a move he described as feeding the nation's 'insatiable appetite' for energy. The announcement, made in a pre-recorded interview with Fox News aired Thursday evening, comes as both nations strive to secure tangible trade and business achievements during their high-level discussions.
"They've agreed they want to buy oil from the United States, they're going to go to Texas, we're going to start sending Chinese ships to Texas and to Louisiana and to Alaska," Trump stated in the interview, which was conducted following his meeting with Chinese President Xi Jinping in Beijing on Thursday.
Beyond energy, Trump indicated that China also committed to assisting with Iran negotiations and would refrain from supplying military equipment to Tehran. He added that the Chinese president expressed a desire for the Strait of Hormuz to remain open and toll-free, highlighting China's strategic interest in global shipping lanes.
Trump emphasized the vast energy reserves of the U.S., asserting, "They have an insatiable appetite for energy, and we have unlimited energy." He further claimed that the U.S. now produces more oil and gas than Saudi Arabia and Russia combined, stating, "we're doing twice as much oil and gas, as they are." Data from the U.S. Energy Information Administration supports this, showing U.S. production at 23.6 million barrels per day in 2025, significantly exceeding Saudi Arabia's 11.21 million bpd and Russia's 10.53 million bpd.
This development occurs amidst a sharp decline in U.S. crude and petroleum exports to China. In the previous year, these exports fell by 25% year-on-year to 237.8 million barrels, with crude oil exports specifically plummeting 95% from 2023 to approximately 8.4 million barrels in 2025. China has historically been the largest buyer of Iranian oil, accounting for around 90% of its crude exports.
Official responses from China's energy and foreign ministries were not immediately available when contacted by CNBC. However, China's foreign ministry announced on Friday that the leaders had reached 'a series of new consensus,' including an agreement to foster 'constructive, strategic stability' in their bilateral relationship for the foreseeable future.
Regarding the situation in Iran, Beijing called for the swift reopening of shipping lanes and urged for a 'comprehensive and lasting ceasefire' to bring stability to the Middle East and Gulf region.
Analysts suggest that by prioritizing commodity sales like oil, soybeans, and beef while potentially not limiting high-tech goods, the U.S. might be positioning itself primarily as a supplier to China. This strategy, according to Rush Doshi, a senior fellow at the Council on Foreign Relations, may not align with Washington's long-term strategic interests, given the intensifying underlying rivalry between the two superpowers.
Despite agreements aimed at managing future relations, the inherent rivalry limits the scope of cooperation. Beijing's emphasis on a 'new positioning' for bilateral ties also signals limited room for Washington to challenge economic and technology issues.
The summit concluded with a tea session and working lunch, where both leaders engaged in discussions that also touched upon the sensitive issue of Taiwan, which Beijing identified as a critical factor that could destabilize bilateral relations.
Wendy Cutler, senior vice president at Asia Society Policy Institute, noted that while the initial meetings were productive, 'actual deliverables' were still being finalized. She anticipates continued negotiations on the second day, adding that while both sides seek stability, it does not signify a complete reconciliation.
Trump himself described the trade deals reached as 'fantastic,' underscoring a perceived positive outcome from the summit.
