China will slash its clean oil product export tax rebates from 13% to 9% starting December 1, which will likely dampen outflows from Asia’s third-largest oil product exporter. While this move may be seen as China laying the groundwork for potential trade talks with the US, other factors, such as capacity rationalization and mounting government debt, could also be at play.

In light of a potential US-China trade war, Commodity Insights’ Asia oil news editor Neo Rong Wei, market specialist Oceana Zhou, and AltView’s Grace Lee discuss in the latest episode of the Oil Markets podcast how this could bode well for Chinese oil demand, while exploring the wider implications these developments may have on regional crude and oil product markets in the year ahead.

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Chinese exports’ tax rebate cuts: a precursor to another US-China trade war in 2025?