AYESHA RASCOE, HOST:
The Strait of Hormuz has been a major sticking point in peace talks between the U.S. and Iran. The U.S. says its blockade there remains. Iran says it controls the Strait of Hormuz. AAA's national average of gas prices remains above $4. Fertilizer prices are squeezing American farmers, and officials in Asian countries are urging people to conserve energy. China is the world's largest importer of crude oil, and we'll take a look now at how Beijing is reacting to the conflict between the U.S. and Iran.
Zongyuan Zoe Liu is a senior fellow for China Studies at the Council on Foreign Relations, and she joins us now from Hong Kong. Thanks for being with us.
ZONGYUAN ZOE LIU: Thank you for having me, Ayesha.
RASCOE: So what's the reaction from Chinese officials about this weekend's news?
LIU: So far, China has not really issued any official statement - neither have they confirmed or shown any signs of affirmative support, nor have they shown any signs of complaint. But overall, I'd say, since the conflict in Iran happened until now, all that Chinese officials have done is to try all that they can to call for restoration of stability.
RASCOE: Well, and - are they concerned about how this is dragging out?
LIU: I mean, Ayesha, yes, certainly we are concerned, and we are more concerned about the longer of other conflicts going on, and to what extent the conflict in Iran may preoccupy President Trump so that it may further delay President Trump's visit to Beijing.
RASCOE: And is the concern about how the timeline - is that why Xi Jinping last week called for the Strait of Hormuz to be reopened, and that was a first for the Chinese president. What do you think about the timing of those comments and Xi's general posture about the war?
LIU: I mean, there are two aspects of that, right? And I'd say, first and foremost, President Xi Jinping is primarily concerned about the relationship with the United States. It's not really about China's vulnerability to oil. The reason is because so far, if we - as long as the war does not last for longer than a year, China has sufficient amount of stockpiles - commercial and strategic petroleum reserves to support China's domestic need. And more importantly, China views its relationship with the United States as the most important bilateral relationship, and this is why China really wants the war in Iran to stop so that it does not derail the start of China's strategic dialogue with the United States.
RASCOE: Could China try to put more influence on Iran to make a deal? Does it - would it do that, and does it have kind of the influence to do that?
LIU: I mean, so far China has been walking a very delicate position, right? On the one hand, it's very easy for us to think that China - considering the fact that China is Iran's most important economic partner, right? - and we tend to think China could pressure Iran further more. But we probably - China probably does not want to get itself on accidentally involved in a region that it doesn't really have the military capacity to maintain peace, nor does China want to get more involved or inherit the responsibility in the area.
RASCOE: The Trump administration put economic sanctions on an oil refinery in China. How significant is that move by the U.S.?
LIU: I'd say that it's more symbolic than actual hurting China. Part of the reason is because a lot of these independent refineries, they really do not contribute too much to China's energy security.
RASCOE: That's Zongyuan Zoe Liu of the Council on Foreign Relations. Thank you so much for joining us.
LIU: Thank you for having me. Transcript provided by NPR, Copyright NPR.
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