Chinese diplomats announced the forgiveness of four no-interest loans to Sudan, totaling $50 million. The announcement comes as China redefines its economic and diplomatic engagement in Sudan during the country's civil conflict, which began in April 2023.

On December 7, 2025, CNPC issued a formal ultimatum to terminate its Block 6 partnership with Sudan. One day later, on December 8, 2025, opposition forces seized Sudan's largest oilfield at Heglig. China's state-owned CNPC had opened Block 6, an oil venture with Sudan's Ministry of Energy, in 1996, the same year China formally established diplomatic and economic relations with Sudan. China had invested approximately $3 billion into oil extraction in Sudan. By 2023, the civil war had broken the oil supply chain to China, leading to CNPC's relocation from Khartoum to Port Sudan and then to Beijing.

In March 2024, Sudan declared force majeure on the Petrodar pipeline, a 1,500-kilometer consortium led by CNPC, Sinopec, and Malaysia's Petronas. This action halted South Sudan's crude exports and terminated the Production Sharing Agreement between northern and southern Sudan regarding the pipeline. The Petrodar pipeline transported South Sudanese crude from the Melut Basin north through Sudan to Port Sudan on the Red Sea. Chargé d'Affaires Xu Jian stated China's intention to resume CNPC operations within Sudan.

Sudanese finance minister Dr. Gebreil Ibrahim praised the loan forgiveness deal. China is also pursuing a $300 million copper deal in Sudan, under which Sudan would receive 30 percent of the profits over a 30-year period. These profits would be disbursed after Sudan's outstanding debt of over $5 billion to China is paid. The Eastern Sudan Advisory Council and the Beja Congress have called for a freeze on any deal-making with China. China voted for an immediate cessation of hostilities with the November 2024 UN Security Council resolution. Chargé d'Affaires Xu Jian also stated that China would continue $30 million in grant-funded projects in Sudan.

Why It Matters

China's recent actions in Sudan, including debt forgiveness and the pursuit of new resource deals, reflect an adjustment in its engagement with the nation. This shift occurs as Western countries, including the United States, have reduced their presence in Sudan. The United States closed its embassy in Sudan in April 2023 and ceased all aid to Sudan in January 2025, while no Western country currently maintains an embassy there. The European Union has committed over €200 million for aid to Sudan.

China's economic and diplomatic reorientation comes despite the ongoing civil conflict, which has seen General Burhan's Sudanese Armed Forces (SAF) control the eastern half of Sudan, including Port Sudan where the Burhan government holds power. The SAF faces debt exceeding $56 billion.