Chinese President Xi Jin Ping has just told the leaders of the Arab Gulf countries that China will buy oil and gas from the government. This does not sound very interesting, but it will be done using Yuan.

Beijing previously created and established plans for using the currency globally, making new dollars to be used internationally. The goal is to weaken Doar's grip on the world economy and trade.

This statement and commitment were expressed by Xi Jinping when he was a guest of Saudi Crown Prince Mohammed bin Salman who hosted two Arab summits. And Saudi Arabia is China's top oil exporter, so this meeting had a considerable effect.

They discussed "non-interference" in Riyadh's relations with Washington, focusing on human rights, energy policy, and Russia. This step and meeting made Saudi Arabia release dollars in its oil trade.

China Buys Oil from Gulf Countries with Yuan, Efforts to Weaken the US Dollar's Grip?

China is indeed known as a country that has succeeded in making the US worry. In addition, regarding China's relationship and growing influence, the US is slowly losing power in international politics in Arab League countries, including the Gulf, Levant, and Africa.

Earlier last Friday, Prince Mohammed said there would be a new phase in the historic Arab relations with China. In stark contrast to the US-Saudi meeting five months ago, which was deemed ineffective and had no significant effect.

Meanwhile, when asked about the comparison of warm relations between Saudi Arabia and China, Saudi Foreign Minister Prince Faisal bin Farhan Al Saud said that Saudi Arabia always works with all its partners, and this is not a Zero Sum Game."

The prince at the press conference also continued: "We don't believe in polarization or choosing between parties." This then received the views of analysts who said that the relationship between Sadi and China only focused on energy interests.

Meanwhile, Chinese companies are starting to get involved in the Saudi technology and infrastructure sector. And now, there is also the question of whether the use of the Yuan in Saudi Arabia for the oil.

However, gas trade will have a significant effect, but it still depends on the proportions. President Xi Jinping said that Beijing's primary goal is to establish a currency that can be used internationally. 

Weakening the US Dollar's grip on world trade is the most important. The Saudis are starting to understand what Trump, Biden, and Xi don't. It was stated that there would not be big winners and losers, as Trump believes. 

A Saudi source also told Reuters that a decision to sell small amounts of oil in Yuan to China could make sense to pay for Chinese imports directly, but it's still the right time and Xi to gloat over nothing.

Great Start, Chinese Yuan Streghtehns to 6.96 Against USD

This trade agreement then made experts believe that China would have to float the Yuan to end the US capital controls. China has virtually a big market big enough and inspires global trust through the trade sector with a currency market that is also big.

And this began to be proven from the first day of Yuan Dollar trading. The central parity rate of Chinese currency stretched 18 pips against the US dollar to 6.9588. China's spot foreign exchange market also allows the Yuan to rise 2 percent from the central parity rate daily.

China has a particular policy for trading its currency and is now starting to target the global trade sector. This can be seen from the Asa Yuan used in Saudi today. This is intended to weaken the grip of the US Dollar as an international currency through the Yuan.