DID Press: China has rejected a request from U.S. President Donald Trump to increase exports of refined petroleum products, including diesel, according to comments attributed to economist Steve Hanke, a professor at Johns Hopkins University.
Hanke said Chinese refineries are currently operating at about 75% of capacity, compared with roughly 97% for U.S. refineries, arguing that China has the capacity to provide additional diesel supplies to the U.S. market.
The White House confirmed that during Chinese President Xi Jinping’s September visit to Washington, Trump urged Xi to increase production of refined petroleum products to help stabilize global supply. Energy analysts had also anticipated that Trump could ask Beijing to increase refined-product exports, although they said Xi was unlikely to adjust China’s oil trade simply at Washington’s request.
Hanke said China subsequently reduced its diesel exports significantly and argued that Xi’s rejection of Trump’s request had received relatively little attention. He added that China holds considerable leverage when it comes to commodities and raw materials.