Data on refinery trade flows show that China could reach a record 1.26 million cubic metres of LNG in November. “Let`s be clear, $52.4 billion over two years is a lot of energy. But neither the 5% tariff on U.S. crude oil nor the 25% U.S. LNG tax should be lowered or abolished by China under the Phase 1 agreement. He said: “From an energy perspective, the most remarkable thing is that China will increase its U.S. energy imports by $52.4 billion over the next two years, as part of the commitment to spend about $200 billion more on U.S. goods and services than in 2017. BEIJING/SINGAPORE (Reuters) – In the first half of 2020, China bought only 5 percent of the $25.3 billion in energy products from the United States, well below its trade commitments, at a time when relations between the two largest economies are already unentive. 2017 was an important milestone for U.S. exporters before the trade war, which then hampered bilateral relations between the two superpowers. Both the United States and China agreed that shipments would increase by $18.5 billion in 2020 from the 2017 benchmark. He added: “While the United States is the world leader in energy development, trade wars are disrupting global supply chains and creating new barriers to U.S.
exports. The oil price crash may explain some of China`s lack of progress in achieving its energy targets. But it also shows the limits of Trump`s controlled trade strategy, based on agreements that promise specific purchases instead of doing hard and systematic work, removing trade barriers, solving problems related to China`s industrial policy, and tackling issues such as intellectual property, exchange rates and subsidies. China`s record on these issues has been problematic for years, and harassing China, buying more American stuff has never been a coherent answer. COVID-19 unveiled China`s promise to buy U.S. energy as a hollow, and the Trump administration`s trade strategy failed. While the gap to the target is not expected to be closed by the end of the year, U.S. and Chinese trade agents reaffirmed their commitment to the agreement in August and Chinese imports of U.S. energy products rose sharply in the second half of the year. As part of a new U.S.-China trade agreement, Beijing has agreed to import $52 billion worth of energy products from the United States over the next two years – but tariffs could prove a challenge The U.S.-China Phase 1 agreement will give a boost to U.S.
oil and gas producers, who are expected to open new export markets.