Deal between Trump and Xi could boost US energy exports in China

U.S. president Donald Trump is expected to arrive in Beijing on May 14-15 for a meeting with President Xi Jinping. U.S. officials'say that a deal could be considered for Beijing to purchase more U.S. Energy.

Tariffs on U.S. LNG and oil imports from China have been halted. These imports were worth $8.4billion in 2024 - the year Trump entered his second term.

Here's a brief summary of its major components.

Analysts say that China's imports from the United States of liquefied gas (LNG), have been influenced by geopolitical developments, and could be a sign of improvement if relations improve.

China's total?imports grew 15% that year to 59.4 millions tons, despite the trade war.

After two years of trade, the U.S. shipped?8,98 million tons (about 200,000 tons) of LNG to China. This made the U.S. the third largest LNG supplier in China for the year. Qatar was the second largest.

By 2024, that number had dropped to 4.15 million tonnes and then fell to 26,000 tonnes in 2025 as China imposed a 25% total tariff on U.S. LNG during the tit for tat trade conflict.

The fall in?imports is a result of Chinese buyers, such as PetroChina or CNOOC, attempting to honor long-term contracts signed with U.S. producers between 2021 and 2023. Cargoes are being resold in Europe to avoid tariffs. Rystad Energy estimates that around 12 million tonnes are contracted to be delivered this year.

Analysts estimate that U.S. spot LNG would be cheaper than Asian cargoes, if Beijing removed their 25% tariff. This is due to the market disruptions caused by the Iran War.

Any increase in LNG imports will likely be limited as China is predicted to have another year of low LNG demand.

China is the largest oil importer in the world, but?the U.S. never has been a major crude source.

After the Phase 1 deal, Chinese oil imports peaked in 2020 at 395,000 barrels a day. This represents less than 4% of China's overall crude imports.

Before Trump's return to office in 2024, China imported 193,000 barrels per day (bpd) worth $6 billion.

China hasn't imported any U.S. crude oil since May 2025, due to an import tariff of 20% imposed in the course of the trade war. This was offset by increased shipments from Canada and Brazil.

ETHANE AND PROPANE

The U.S. has been China's only supplier of ethane for decades, which is a critical input in the production of plastics. Shipments continue despite the trade conflict.

China imports 5.95 million tons ethane valued at $2.96 billion. Imports increased 50% on an annual basis in the first quarter of 2026.

Last year, China's reliance on ethane became apparent when Beijing waived its 125% retaliatory duties for ethane imported while the U.S. restricted ethane exports for months.

In 2025, the U.S. will remain China's top propane supplier despite tariffs. It will export propane worth more than $6 billion, which is used in plastics to produce propylene.

(source: Reuters)