Xi's Visit Sparks Hope for Revival of US-China LNG Trade

The US-China trade in liquefied natural gas (LNG) could see a revival following President Xi's visit to the US, according to Jane Nakano, a senior fellow at the Center for Strategic and International Studies. LNG is an apparent area of mutual gain, as China is the biggest buyer and the US is the largest exporter.

The trade was frozen in 2025 after President Donald Trump launched an aggressive tariff push against China, which led to Beijing imposing punitive duties on US energy imports, including LNG. Chinese companies continued to fulfill contracts but instead sold the cargoes to Europe and Asia, avoiding the 15% tariff.

A revival of the trade could be beneficial for both parties, with China needing a reliable supplier due to tight shipping in the Persian Gulf and limited access to Qatar, one of its key suppliers. For the US, it would deliver big headline figures, as LNG contracts typically run for decades and producers are expanding and hungry for new commitments.

China holds contracts for roughly 14 million tons per year of US LNG, worth about $6 billion at long-term prices. Momentum is reappearing, with China Gas Holdings Ltd striking a rare long-term arrangement to purchase US LNG for 20 years beginning in 2030. Other Chinese purchasers have also sat down with US sellers during recent trade gatherings.