Key Points:
- US President Donald Trump and Chinese President Xi Jinping will discuss a major energy trade deal in Beijing this week.
- High tariffs imposed by the ongoing trade war completely halted most Chinese imports of US oil and natural gas in 2025.
- China still imports billions of dollars’ worth of American ethane and propane to produce essential plastics.
- Removing a 25% tariff on natural gas could make US energy cheaper than Asian alternatives during the current global crisis.
US President Donald Trump arrives in Beijing this week for a high-stakes summit. He will meet with Chinese President Xi Jinping on May 14 and May 15. US officials expect the two leaders to discuss a massive new energy agreement. This deal could force China to buy significantly more American oil and gas.
The current US-China trade war has heavily damaged energy relations between the two countries. Strict border tariffs completely halted most Chinese purchases of American crude oil and liquefied natural gas. Just two years ago, in 2024, the total energy trade between the two nations reached an impressive $8.4 billion. Experts hope this upcoming meeting will reopen those lucrative trade channels.
Trade data show that Chinese imports of American liquefied natural gas fluctuate with global politics. During the first trade war in 2019, Chinese buyers purchased only 260,000 metric tons of the superchilled fuel. This massive drop occurred even though China increased its total global natural gas imports by 15% to 59.4 million tons in the same year.
Following a temporary trade agreement, the numbers jumped dramatically. The United States quickly shipped 8.98 million tons of natural gas to China, becoming the third-largest supplier to the Asian nation. However, the market crashed again later. Total volume fell to 4.15 million tons in 2024. By 2025, shipments plummeted to a miserable 26,000 tons after Beijing slapped a heavy 25% tariff on American gas.
Despite the massive drop in direct imports, Chinese energy companies still buy American fuel. Giant corporations like PetroChina and CNOOC signed long-term delivery contracts with American drillers between 2021 and 2023. To avoid paying the punishing 25% domestic tariff, these Chinese companies simply take the American gas and resell it directly to buyers in Europe. Energy analysts estimate these companies will handle about 12 million tons of contracted fuel this year alone.
Industry experts believe American natural gas could quickly dominate the Asian market if Beijing removes the strict 25% tax. Ongoing wars in the Middle East are currently causing massive price spikes in regional energy supplies. Cheap American gas offers a highly attractive alternative. Still, experts warn that any sudden increase in American imports might stay relatively small because overall Chinese demand for natural gas remains sluggish this year.
Crude oil presents a very different challenge for the two leaders. China imports more oil than any other country on the planet, but it rarely buys from the United States. During the peak of friendly trade in 2020, Chinese refineries purchased about 395,000 barrels of American oil per day. That record volume still accounted for less than 4% of total Chinese crude imports.
In 2024, Chinese buyers imported a modest 193,000 barrels of American oil per day, generating about $6 billion in revenue. However, that trade completely died out recently. China has not purchased a single drop of American crude oil since May 2025. A severe 20% import tariff forced Chinese refineries to seek cheaper oil from alternative suppliers in Canada and Brazil.
While oil and gas face strict restrictions, other chemical products cross the border easily. The United States operates as the sole supplier of ethane to China. Chinese factories desperately need ethane to manufacture everyday plastics. Because of this massive demand, chemical shipments continue to flow across the ocean without interruption.
Chinese customs data reveals strong growth in this specific sector. In 2025, China imported 5.95 million tons of American ethane, spending exactly $2.96 billion. This demand only grows stronger over time. Ethane imports jumped a massive 50% year-on-year during the first quarter of 2026.
The Chinese government completely depends on American ethane to keep its factories running. Last year, Beijing proved this reliance by waiving its massive 125% retaliatory tariffs specifically for American ethane imports. This rare waiver came right after the United States restricted its own exports for several months, causing widespread panic in Chinese manufacturing hubs.
Propane tells a very similar success story. The United States easily maintained its position as the largest propane supplier to China throughout 2025. American energy companies exported more than $6.6 billion worth of propane to Chinese buyers. Factories use this chemical to produce propylene, another crucial ingredient for the global plastics industry.
