WASHINGTON, March 21 (Reuters) - Two U.S. senators
introduced legislation on Thursday to harden the ban on selling
crude oil from the Strategic Petroleum Reserve (SPR) to China.
The bill, introduced by Senators Joni Ernst, a Republican
and John Fetterman, a Democrat, would ensure that companies
owned or controlled by China's government do not buy oil from
the SPR.
A funding bill signed by President Joe Biden this month
blocked Chinese companies from buying oil, but contained an
exception if the oil was not exported to China.
"This bipartisan bill will ensure America's Strategic
Petroleum Reserve does not fall into the hands of those trying
to harm us and ensure (Chinese Communist Party) controlled
businesses are not making money by stockpiling
taxpayer-subsidized oil," Ernst said.
The bill would also block the export or sale of SPR oil to
countries including Russia, Venezuela and Syria, none of which
have been significant buyers of the oil.
"Our adversaries should not be able to purchase oil from our
SPR - that's just commonsense," Fetterman said.
The desire for a hard line on China is one of the few
bipartisan sentiments in the deeply divided U.S. Congress.
Lawmakers have introduced dozens of bills seeking to address
competition with China's government.
The issue of SPR sales to China heated up after Biden, a
Democrat, announced in 2022 a sale of 180 million barrels of SPR
oil, the largest ever, to tame gasoline prices that spiked after
Russia's invasion of Ukraine.
That year, 1 million barrels of SPR oil was sold to UNIPEC
America, a Houston-based arm of China's Sinopec. In
2017, under former President Donald Trump, a Republican, some
SPR oil was sold to PetroChina International, a subsidiary of
Chinese state oil company PetroChina Co Ltd.