In consequence to the worsening trade war between the US and China, Beijing took a extremist step – it completely halted imports of liquefied natural gas (LNG) from the United States. Vessel tracking data indicate that since 6 February 2025, China has not accepted a single US LNG transport. This decision is peculiarly severe for Donald Trump's administration, which hoped to strengthen the U.S. position as a global leader in gas exports.
Why did China quit American LNG?
The main reason is Retaliatory duties imposed by Beijing in consequence to US protectionist action. As of February 2025, applicable 15% work on LNG from the USA, which dramatically increased import costs for Chinese customers.
However, this is not the only factor:
Low price competitiveness – LNG from the USA is more costly in transportation to East Asia than gas from Australia, Qatar or Malaysia.
Decrease in request in China – Mild winter and weakening manufacture reduced gas demand.
Alternative sources of supply – China increases gas imports by pipelines from Russia and Central Asia, lowering prices on the home market.
Rerouting supplies to Europe – Chinese companies sale US LNG on the European market, where prices have increased after the Russian gas transit agreements have expired across Ukraine.
Why does this decision hurt the United States?
Loss of key outlets "In 2024 the US provided 5.5% of Chinese LNG imports, but in 2025 this share fell to just 1.3%.
Risk to investment in US LNG – Chinese companies specified as Sinopec and PetroChina had previously signed long-term contracts that allowed financing multi-billion-dollar export projects. Now Beijing deliberately avoids fresh US deals, directing orders to competing suppliers.
A symbolic blow to Trump's politics – The Trump administration sees LNG exports as a tool to strengthen American energy dominance. China's resignation shows that Washington can number in its economical strategy.
Effects on the global LNG market
Increasing Europe’s importance as an alternate outlet for American gas.
Price increases in Europe After the Russian gas contracts expire.
Accelerating diversification of supply by China, which weakens the U.S. negotiating position.
China's decision to completely suspend imports of American LNG shows that Beijing not only has alternatives, but besides can usage them as weapons in the commercial war. For the Trump administration, this is simply a peculiarly painful blow due to the fact that it hits 1 of the pillars of the American energy strategy – the export of LNG as a tool of economical influence. In the long term, this could force the US to revise customs policy or search fresh outlets.
Source:
- Nikkei Asia: “Chinese imports of American LNG dry up as trade war rages”
- Kpler and Vortex data
- Analysis of Rystad Energy
Leszek B. Glass
Email: [email protected]
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