During U.S. President Trump's second term, China has almost completely stopped importing major energy resources from the U.S. In July, China’s total imports of crude oil, liquefied natural gas (LNG), and coal—the three main types of energy resources—from the U.S. dropped below 1 ton, the lowest level since December 2019. Analysts suggest that China’s current move to “de-Americanize” its energy supply may be long-lasting.
According to Nikkei Chinese website report citing data from the investigative company CEIC and China’s National Bureau of Statistics, since March, China’s LNG imports from the U.S. have been zero, and since June, crude oil imports have also been zero. The latest July figures show the same.
As for coal (including coal for steel production), previous imports from the U.S. stood at around 1.35 million tons, but after May they sharply declined to less than 1 ton.
The report points out that this trend of “de-Americanization” in China’s energy sector could persist for a long time. The reasons are the current deadlock in Sino-U.S. trade negotiations, and the fact that after the outbreak of the Russia-Ukraine war in 2022, China has strengthened its energy security by diversifying sources of imports.
This is not the first time China has stopped importing U.S. energy. At the end of 2019, during intense U.S.-China friction in Trump’s first term, imports of the three main types of energy resources also dropped to zero. However, after the Phase One trade deal was signed the following year, imports quickly recovered.
CEIC data shows that in July, China’s natural gas production was 21.6 billion cubic meters, a year-on-year increase of 7.6%. Imports of natural gas through pipelines connected to Russia and Central Asia were 5.2 million tons, up 4.8% year-on-year. In the same month, China’s crude oil imports from Russia rose 16.8% year-on-year.
The report quotes Marubeni Research Institute senior chief researcher Li Xuelian as saying that, because China is able to purchase low-priced crude oil and pipeline natural gas from Russia, its willingness to buy expensive resources such as LNG has declined. This has become a factor in suppressing Asian LNG price increases.