[Text/Observer Network Liu Chenghui] Trump's tariff policy has severely impacted the economic and trade pattern between China and the US. In retaliation, China has imposed additional tariffs on imported American liquefied natural gas (LNG). According to a Bloomberg report on April 6, China has not imported any LNG from the US for 60 consecutive days, which is the longest interval in five years. Due to the intensifying tensions between the two countries, Chinese buyers are turning to other countries and regions for LNG purchases.

The latest data from shipping tracking company Kpler shows that there are currently no shipments of LNG from the US heading to China. According to Bloomberg's compiled shipping tracking data, during the trade war initiated by Trump in his first term, as of April 2020, China had not received any LNG shipped by sea from the US for approximately 400 days.

Bloomberg: China has suspended imports of LNG from the US.

The report noted that the US and China are respectively the world's largest buyers and sellers of LNG, but geopolitical conflicts have led both sides to "decouple." Reuters estimates that US LNG exports will reach 86.9 million tons in 2024, an increase of 2.8% compared to 2023. According to data released by China's General Administration of Customs, China's LNG imports reached 71.32 million tons in 2023.

In response to the US imposing a 10% tariff on Chinese goods, China imposed additional tariffs on certain imports from the US starting February 10 this year, including a 15% tariff on LNG. With the US government introducing so-called "reciprocal tariffs," China announced on April 4 that it would impose an additional 34% tariff on all imports from the US based on the current applicable tariff rate.

The report noticed that Chinese LNG buyers receive shipments from the US under binding long-term contracts. The mild winter and ample inventories mean that China currently does not have an urgent need for LNG, providing more flexibility for Chinese traders to resell US supplies to competitors in Europe and Asia.

This move has also eased concerns in Europe, which needs more LNG to replenish its stockpile and replace lost Russian pipeline gas supplies.

The US media noticed that US Secretary of State Rubio claimed in January this year that LNG should become a "bargaining chip" in trade negotiations, but China did not cooperate. This is a bad sign for American natural gas suppliers seeking to secure contracts to launch new projects. Meanwhile, China's efforts to diversify key energy supplies have shown results, and "China's push for self-reliance has hindered the energy transactions that Trump hoped to see."

December 11, 2023, China Petrochemical Gas Branch Tianjin LNG Receiving Station. Visual China

Bloomberg revealed on the 18th that Chinese buyers are unwilling to sign new agreements with American sellers and are seeking to purchase LNG from the Asia-Pacific region or the Middle East.

On March 17, Woodside Energy, the Australian energy giant, released a press release announcing a long-term LNG sales agreement signed with China Resources Gas Company: starting in 2027, Woodside will supply approximately 600,000 tons of LNG annually over a period of 15 years. This is the first time the company has signed a long-term sales agreement as an independent company with a Chinese customer, and it is also the first time that China Resources Gas has signed a 15-year LNG procurement contract.

Bloomberg pointed out that this is the first regular LNG supply agreement signed between Chinese and Australian companies in many years, which is a result of improved trade relations between the two countries.

Peng Peng, secretary-general of the China New Energy Power Investment and Financing Alliance, previously told the China Energy News that China's supply channels for natural gas are diverse and do not rely solely on the US.

China is committed to increasing domestic natural gas production to strengthen energy security. Data from the National Bureau of Statistics shows that from January to February 2025, the national industrial natural gas output was 43.3 billion cubic meters, an increase of 3.7%. At the same time, cheaper alternative energy sources such as coal, renewable energy, and Russian natural gas transported via land are weakening China's demand for seaborne natural gas.

This article is an exclusive piece by the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7490476267456823834/

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