The US Will Not Sell Strategic Petroleum Reserves to China

Exports of the U.S. Strategic Petroleum Reserve to China are set to be blocked.

On the 4th (local time), major foreign media including Bloomberg reported that the day before, U.S. female leaders announced a government funding bill worth $436 billion, equivalent to about one-quarter of federal agency operating funds, to prevent a federal government shutdown. This bill includes provisions prohibiting the sale of strategic petroleum reserves to China.

The Strategic Petroleum Reserve refers to crude oil separately stockpiled by the U.S. government in preparation for emergencies. It was established after the oil embargo imposed by the Organization of the Petroleum Exporting Countries (OPEC), centered on Saudi Arabia, in the 1970s.

The Republican Party has consistently argued that sales of strategic petroleum reserves to China should be banned, citing the sale of about 1 million barrels in 2022 to Unipec America, a subsidiary of Sinopec, China's largest refiner. Under current law, the U.S. Department of Energy is required to sell to the highest bidder through competitive auctions regardless of whether the bidder is a foreign company.

There is analysis that bipartisan consensus was facilitated by the recent significant reduction in the strategic petroleum reserve. Following the release of 180 million barrels in 2022 due to Russia's invasion of Ukraine, it is known that about 360 million barrels remain currently. This is close to the lowest level in 40 years.

Additionally, the bill includes regulations on foreign purchases of farmland. While it does not completely ban farmland purchases by entities related to China, North Korea, Russia, Iran, and others, it aims to closely scrutinize such transactions. The bill also adds the Secretary of Agriculture to the Committee on Foreign Investment in the United States to review farmland transactions.

Congress is expected to pass the government funding bill by the 8th at the latest.

This content was produced with the assistance of AI translation services.