Interanational security

 

As China And Russia Grow Closer, America’s Energy Sector Loses

During a media visit to China last fall, one participant pulled me aside to explain that the Chinese have never really liked Russia and Japan — though they are fond of Americans. In the intervening months, that Chinese executive has probably had a change of heart: Presidents Xi and Putin say that they are best friends while President Trump has only deepened geopolitical tensions with Beijing. 

As U.S.-Sino relations digress, the benefits are accruing to Russia and hurting American businesses. China is now looking to Russia to quench its insatiable thirst for oil and gas while it considers relinquishing ties to U.S. oil and gas producers. Will this dynamic stand?

Before Trump, the U.S. had a constructive relationship with China based on engagement and international order, says Daniel Yergin, vice chairman of IHS Markit INFO -0.1%, in a discussion hosted by the Atlantic Council. “We’ve gone from that kind of view of interdependence to strategic confrontation — and language we have not heard. The two economies are so tightly connected. You can’t just slam the door shut and say we are outta here. China has trillions of dollars of our debt. Chinese equities have given Americans their returns.”