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Friday 21 February 2025

U.S. President Donald Trump (left) speaks with Russian President Vladimir Putin after a summit in Finland in 2018.
U.S. President Donald Trump (left) speaks with Russian President Vladimir Putin after a summit in Finland in 2018.

China's top diplomat says that a "window for peace" is opening amid a quickening pace of U.S. diplomacy around ending the war in Ukraine and steps by Washington to normalize relations with Moscow.

“China supports all efforts dedicated to peace, including the recent consensus reached by the United States and Russia,” and was willing to play a “constructive role” in peace talks, Chinese Foreign Minister Wang Yi told ministers a Group of 20 summit in South Africa on February 21, according to a statement.

That statement came after high-stakes U.S.-Russia talks in Riyadh that sparked fears in Kyiv and European capitals about being sidelined and saddled with a peace deal that favors Russia.

But despite Wang's public comments, experts and former officials believe that the prospect of a rapprochement between Russian President Vladimir Putin and U.S. President Donald Trump is also fueling unease in China.

“The Chinese have seen this coming since Trump was elected and signaled that he wanted to quickly end the war in Ukraine,” Dennis Wilder, who was a top White House China adviser to former U.S. President George W. Bush, told RFE/RL. “While a complete rapprochement might not be in the cards, they’re nervous because if Trump lifts sanctions on Russia, then Moscow’s dependency on China decreases.”

One of the hallmarks of Chinese leader Xi Jinping’s foreign policy has been a burgeoning strategic partnership with Putin that’s grown closer since Moscow’s full-scale invasion in February 2022. Beijing has propped up the Russian economy through enhanced trade and energy purchases while fueling the Kremlin’s war effort with the supply of key goods as both Xi and Putin have found common ground in wanting to challenge the West and unseat the United States.

And fear of all that being derailed by a new type of U.S.-Russia relationship born out of a negotiated end to the war in Ukraine -- as was raised this week during talks in Saudi Arabia -- is real for Beijing.

Wilder says that he’s had conversations with “very senior Chinese officials” since Trump’s election in November who have expressed concern about a potential U.S.-Russia reset.

He says they’ve used the phrase “only Trump goes to Moscow,” a play on the historical reference to former U.S. President Richard Nixon’s landmark visit to Beijing in 1972, when he defied precedent and courted China to exploit its split with the Soviet Union at the height of the Cold War. Efforts to drive a wedge between Beijing and Moscow by warming up to Russia have been termed by some analysts as a “reverse Nixon.”

“In the same way as Nixon with China policy, they see Trump as someone who is uniquely placed to run against the current nature of U.S. policy towards Russia and could even travel to Moscow,” Wilder said. “This doesn’t mean the Chinese think that the Russians will break relations, but their strong alignment today could diminish.”

What’s Washington’s Strategy?

It remains to be seen what the Trump administration’s outreach will bear fruit, but following a phone call this month with Putin, recent U.S.-Russia talks in Riyadh, and a deepening rift with Ukrainian President Volodymyr Zelenskyy over peace talks, the White House is charting a new course for the war in Ukraine and its ties with Moscow.

“We seem to be witnessing not a reset but a wholesale realignment of U.S.-Russian relations,” Lucian Kim, senior Ukraine analyst at the International Crisis Group, told RFE/RL. “In that sense, the war in Ukraine is not a call to resist Russian aggression but a roadblock to closer cooperation between Washington and Moscow.”

For Beijing, this development comes with plenty of worrisome hypotheticals, including allowing Washington to build up its military footprint in the Pacific and leaving China more geopolitically exposed in the event of a crisis with Taiwan, the self-governing island that Beijing claims as its own.

“I think China would prefer to see a weak Russia and even continuing the Ukraine war would better serve Beijing as that would have the United States’ focus scattered away from the Indo-Pacific,” Sari Arho Havren, an associate fellow at London's Royal United Services Institute, told RFE/RL.

The Trump administration has made clear it sees managing a long-term rivalry with China as its top foreign policy objective and may look to deprioritize regions like Europe and the Middle East in order to raise pressure on Beijing in Asia.

Senior U.S. officials have also telegraphed in recent comments that cracking the China-Russia partnership could be part of the motivation in normalizing ties with Moscow.

Following the talks in Riyadh, U.S. Secretary of State Marco Rubio said that the possibility for future “geopolitical and economic cooperation” between Washington and Moscow was among the key points discussed.

A few days earlier at the Munich Security Conference, Keith Kellogg, Trump’s special envoy for Ukraine and Russia, said that the United States aimed “to force” Putin into actions he was “uncomfortable with,” including disrupting Moscow’s ties with China, Iran, and North Korea.

In a February 14 interview with The Wall Street Journal, U.S. Vice President JD Vance said that Washington was prepared to reset the relationship with the Kremlin following an agreement over Ukraine as a move to end Russia’s isolation and its growing dependence on China since the war began.

“It’s not in Putin’s interest to be the little brother in a coalition with China,” Vance said.

Trying to diminish the two countries’ partnership has also been on the radar of Trump administration officials for some time.

Robert O’Brien, who served as national security adviser under Trump from 2019 to 2021, said in an interview last year that the White House had discussed the strategy during his tenure and that reaching a settlement for the war in Ukraine is a vital first step in kickstarting that process.

“Until we get the Ukrainian situation solved, we’re not going to have a chance to make a run at Russia,” he told the Wire China in June.

Can Trump Break China and Russia Apart?

Arho Havren says that the likelihood of the United States engineering a formal split between Beijing and Moscow are small -- especially while Putin remains in office, given the relationship that he’s forged with Xi.

But even new cracks between the two powers may loosen Moscow’s alignment with Beijing and could have a deterrent effect on China, especially if it decides to use military force to take Taiwan, something that U.S. policymakers warn is a growing possibility.

With An Eye On Ukraine, Taiwan Prepares For Trump 2.0
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“Even if their ties remain strong, historically there is distrust between them that won’t go away,” she said.

But while the Trump administration’s diplomacy is moving at a dizzying pace, it’s also still in its early stages and more developments could be around the corner.

Steve Tsang, director of SOAS University London's China Institute, says that Washington’s efforts to reset Russia ties are also not all bad news for Beijing.

“Xi does not want Putin to fail in the war, and so Trump delivering a peace that mostly meets Russian conditions is a positive,” he told RFE/RL. “Who knows who will be the next U.S. president and if there will be a reversal of U.S. posture post-Trump.”

In another development that could further complicate things, Trump said on February 19 that he expects Xi to visit Washington and that he’s open to reaching a trade agreement with China, potentially as part of a wide-ranging deal with Beijing.

“Everything is moving very quickly,” Arho Havren said. “China isn’t happy with what it sees right now, but there is room for that to change.”

Iranian super tanker Adrian Darya 1, formerly known as the Grace 1, which is believed to be part of A shadow fleet operated by Iran.
Iranian super tanker Adrian Darya 1, formerly known as the Grace 1, which is believed to be part of A shadow fleet operated by Iran.

The United States has imposed sanctions on a network of people and firms accused of facilitating the sale of millions of barrels of Iranian oil to China as U.S. President Donald Trump’s administration seeks to bring Iran’s crude exports to zero.

The new tranche of sanctions is an opening shot against Beijing and Tehran, designed to put China on notice without disrupting back-channel discussions to explore the potential for a deal with Iran that restricts its nuclear program.

Analysts say these sanctions -- which targeted individuals and vessels linked to the so-called shadow fleet of ships that transport embargoed Iranian oil -- could be effective but will not drive Iran’s oil exports down to zero. Tougher measures would be needed to do that -- going after Chinese institutions, such as banks that process oil transactions, for example-- but that could risk escalating tensions between the world’s top two economies.

“This is a toe in the water, but not because Trump necessarily wants to tread carefully,” said Tom Keatinge, director of the Center for Finance and Security at the Royal United Services Institute (RUSI) in London. “This is a way to send a message and put everyone involved in moving Iranian oil on notice.”

Why Is Trump Hitting Iran?

Iran’s economy is heavily reliant on oil revenues, which the U.S. State Department on February 6 said are used to fund “terrorists and proxy groups,” referring to Iran’s network of regional armed groups that oppose Israel and the U.S.

The new sanctions target over a dozen people and companies in China, India, and the United Arab Emirates, including Iranian and Indian citizens and crew management firms as well as a collection of tankers.

“These sanctions, and what is sure to follow, will almost certainly have an impact,” said Nader Itayim, a Middle East energy expert at the U.K.-based Argus Media. “The question really is how big that impact might be. And that will ultimately depend on how seriously the Trump administration chooses to go after the Iranian oil trade.”

The 2015 nuclear deal lifted U.S. sanctions, allowing Iran to sell oil. Trump withdrew from the deal in 2018, reimposing sanctions that cut exports to around 400,000 barrels per day.

Iran later boosted sales through sanctions evasion, rising Chinese demand, and looser U.S. enforcement under former President Joe Biden.

The new sanctions are part of the Trump administration’s return to the "maximum pressure" campaign that defined the Republican president’s Iran policy in his first term. Trump says Iran is "too close" to developing a nuclear bomb, while Tehran has long claimed its atomic program is peaceful.

“One of his objectives now is to bankrupt Iran,” Keatinge said. “Since [Trump] was last president, the sanctions community at large -- public and private -- have learned a lot about how to target a country's oil revenue and go after the broader infrastructure, largely from the experience with Russia's own shadow fleet.”

As part of its effort to evade Western sanctions on its oil exports and help fund its war against Ukraine, Russia has employed a shadow fleet of hundreds of aging tankers largely registered in non-Western jurisdictions to export the majority of its oil to market.

How Does The 'Shadow Fleet' Operate?

Iran’s own “shadow fleet” of tankers has been crucial to its ability to evade sanctions and covertly transport oil to China and other destinations.

This strategy includes ship-to-ship transfers, intermediaries, concealed financial transactions, and rebranding the oil to disguise its Iranian origin, making it appear to come from another country.

These methods have allowed Iran to keep moving oil and generating revenue despite sanctions.

According to United Against Nuclear Iran, a nonprofit group that campaigns against threats it says are posed by Tehran, 587 million barrels of oil were moved by Iran in 2024 and 91 percent of those exports went to China.

China has long been the largest buyer of Iranian oil, but since 2022 it has stopped officially purchasing it to avoid U.S. sanctions, according to data from commodities research firm Kpler.

Despite the official stop in purchases, billions of dollars' worth of sanctioned Iranian oil have still found their way to China through the shadow fleet network used by Iran.

What's Trump’s Next Move?

U.S. officials have sought to prevent Iran from shipping the oil by pressing China and other countries not to participate, and imposing sanctions on vessels that it believed could help transport the oil.

The latest round of sanctions targeted vessels and shipping companies said to be involved in moving Iranian oil and Keatinge, the expert from RUSI, says this reflects the evolving playbook developed in recent years as the United States and its allies have targeted ships moving Russian oil.

He says these measures could be expanded beyond just targeting ships that move the oil to also sanction other aspects of the shadow fleet infrastructure, such as the companies that insure the vessels, the agencies that recruit the crews, the ports that receive the ships, and a broader diplomatic campaign to pressure the countries that register them.

Argus Media’s Itayim believes such moves are likely to scare off “the more risk-averse Chinese buyers” but would have a limited impact in curbing the flow of Iranian oil. To drive Iranian oil exports down further, he says, would require more pressure on Chinese ports and on buyers and intermediaries, including even banks in the country.

Doing so could have ripple effects on Washington’s ties with Beijing and escalate tensions, which were recently inflamed with a new round of tit-for-tat tariffs on February 4.

An Iranian military speedboat patrols the waters as a tanker prepares to dock at an oil facility on Kharg Island in the Persian Gulf. (file photo)
An Iranian military speedboat patrols the waters as a tanker prepares to dock at an oil facility on Kharg Island in the Persian Gulf. (file photo)

Keatinge says that curbing Iranian oil could be part of a broader conversation between Trump and Chinese President Xi Jinping and that the recent sanctions provide a way to ramp up pressure on Tehran without fueling additional tensions with Beijing.

“China is the big problem to solve if you want to squeeze Iranian oil, but does Trump want a sanctions war with Xi?” he said.

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In recent years, it has become impossible to tell the biggest stories shaping Eurasia without considering China’s resurgent influence in local business, politics, security, and culture.

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