what probably unnerves the Biden Administration most could be the talk that Chinese President Xi Jinping may be planning to visit Saudi Arabia, amidst persistent reports recently that Riyadh and Beijing are in talks to price some of the Gulf nation’s oil sales in yuan rather than dollars, which would indeed mark a profound shift for the oil market and help advance China’s efforts to convince more countries and international investors to transact in its currency.
The Saudi explanation for the shift to the yuan is that the kingdom could use part of new currency revenues to pay Chinese contractors involved in mega projects within the kingdom domestically, which would reduce the risks associated with the capital controls Beijing imposes on its currency. But, for Washington, that means certain sensitive Saudi-China transactions in yuan do not appear in the rearview mirror of the SWIFT messaging infrastructure, making transaction monitoring unviable.
There are persistent US reports that with Chinese support, Saudi Arabia may be constructing a new uranium processing facility near Al Ula to enhance its pursuit of nuclear technology. Saudi Arabia’s generous $8 billion in financial support for Pakistan, unveiled this week, will almost certainly raise hiccups in Washington.
Saudi Arabia is a central pillar of China’s Belt and Road infrastructure initiative and ranks in the top three countries globally for Chinese construction projects, according to the China Global Investment Tracker, run by the American Enterprise Ins ute. Suffice to say, the CIA chief’s call could not have been for a friendly chat with Prince Mohammad.
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qnd spot on too 