China’s support to Russia and accelerating Taiwan-China conflict can heat up the Natural gas market globally
- 11-Apr-2022 2:19 PM
- Journalist: Nina Jiang
Concerns are growing over China’s support for Russia despite the war in Ukraine. The communist party in China was trying to rally sympathy for Russia and supported the Russian government in the ongoing conflict. In the last several years, China has noticed a harsh tone from the United States regarding its tariffs on Chinese goods coming into the United States and concerns about Human rights. Due to this, China tried to forge its path by forming other alliances worldwide by helping Russia in this conflict. To lessen the influence of the West, China and Russia realigned themselves by forming tighter partnerships. The Indian government is still neutral, and Russia and the US are battling to get India to take its side in the Ukraine war.
On the other hand, the tension between China and Taiwan rose as exports of ammunition, and special military training units to Taiwan from the U.S. increased. Under President Biden and former President Donald Trump's influence, the ties between Taiwan and the U.S. remained tight, showing the support for Taiwanese President Tsai Ing-wen by forming allies. Accordingly, China's Foreign Ministry has progressed furious reactions, denying any correspondence between Ukraine and Taiwan and excusing U.S. displays of support for Taiwan. The Biden administration approved USD 95 million in arms package sales to improve Taiwan's air defence system, a second such package this year.
According to ChemAnalyst, China could provide Russia much needed help by purchasing energy and providing financial services. With increasing sanctions and the US banning all imports of Russian oil and gas, China could help fill up some of the gaps. On 4th February, there was another agreement between Russia and China to construct a new pipeline that would send an additional 10 billion cubic meters of Natural Gas to China, which will support the Russian energy sector. It is also expected that prices of Methanol will decrease in the Asian market as Russia can increase its exports of Natural Gas to China and other Asian regions.