U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer have each highlighted China’s critical stake in keeping the Strait of Hormuz open, as disruptions threaten global energy flows. Bessent said Beijing is expected to privately press Iran to reopen the strait, noting that China buys nearly all of Iran’s exported crude and relies on the Middle East for over 50% of its oil imports. China’s crude supply lines are already feeling the strain, with Iran facing storage issues and the need to slow production as tankers remain unable to load or pass through the strait.
During a Beijing summit between President Donald Trump and President Xi Jinping, the strait was a major topic. Xi opposed militarization and tolls but agreed the route must remain open. Bessent pointed out that China is already looking to U.S. energy exports, including Alaskan oil and LNG, as it seeks to diversify away from the unstable Middle East. The U.S. plans to boost Alaskan exports, with Bessent calling it a logical supply point for China.
Greer separately emphasized that freedom of navigation through the Strait of Hormuz is crucial not only for China’s economic stability but for the global trading system. Nearly one-fifth of global petroleum passes through the strait daily, and a closure would spike oil prices, disrupt LNG and petrochemical supply chains, and threaten manufacturing output worldwide. Greer’s remarks signal pragmatic U.S. cooperation on shared vulnerabilities, even amid broader trade tensions with Beijing.
The summit also addressed artificial intelligence guardrails. U.S. and Chinese officials discussed protocols to prevent criminal and terrorist exploitation of advanced AI, with Bessent insisting the U.S. must maintain its AI lead. The talks come after Anthropic’s Mythos AI exposed software flaws that forced hurried security patches in the financial sector. Bessent clarified that decisions on Nvidia H200 chip access remain with the Commerce Department, not Treasury.
