RIYADH, Saudi Arabia: China's President Xi Jinping said in Riyadh last week that Gulf nations have agreed to sell and purchase oil through the Shanghai Petroleum and National Gas Exchange.
Of note, transactions will be conducted using Chinese yuan, rather than U.S. dollars.
The Shanghai Petroleum and Natural Gas Trading is a national energy trading platform which works to secure China's position as a hub for purchasing and selling energy.
"China will continue to import large quantities of crude oil from GCC countries, expand imports of liquefied natural gas, strengthen cooperation in upstream oil and gas development, engineering services, storage, transportation and refining, and make full use of the Shanghai Petroleum and National Gas Exchange as a platform to carry out yuan settlement of oil and gas trade," Xi said.
Xi further said he would seek other areas for cooperation with the Gulf states, including finance and investment, innovation and new technologies, as well as aerospace, language and cultures.
"China is willing to carry out financial regulatory cooperation with GCC countries, facilitate GCC enterprises to enter China's capital market, establish a joint investment association with GCC, support sovereign wealth funds of both sides to cooperate in various forms," Xi added.
Xi's visit to Saudi Arabia is occurring just as Riyadh has questioned American intentions due to criticism over Saudi human rights issues, energy policy and cooperation with Russia, along with shared doubts by Gulf countries as to US security commitments to the region.