<p>China’s imports of three major energy products from the United States plunged to near zero in June, marking a sharp shift that could further complicate ongoing trade talks between Washington DC and Beijing. Deliveries of American crude oil, liquefied natural gas (LNG), and coal hit rock bottom, reflecting both economic and geopolitical factors at play. The trend represents a significant challenge for the Biden administration as it looks to re-engage with China on resolving their trade disputes.</p><h2><strong>No US crude imports for the first time in three years</strong></h2><p>China’s decision to forgo American crude oil imports last month for the first time in nearly three years underscores a growing trend of diversifying energy supplies. In June 2024, Chinese imports of US crude were valued at nearly $800 million. By June 2025, however, no shipments had arrived at Chinese ports. The sudden halt follows the 10-15 per cent tariffs imposed on US energy products starting in February 2018, when the US-China trade war began.</p><p>Rystad Energy’s Lin Ye told Bloomberg that the decline in US energy imports, especially crude, signals China’s strategic shift towards suppliers like Saudi Arabia and Russia. These nations now dominate China's energy market, while US oil barely cracks the top 10 on the customs reports. “The move away from US crude is not just about cost but also about sending a message in the context of broader geopolitical tensions,” Ye said.</p><h2><strong>Diversification amid tariffs and sanctions</strong></h2><p>The reduction in US energy imports comes as Beijing works to reduce reliance on American sources. In addition to Saudi Arabia and Russia, China has increasingly relied on alternative suppliers for natural gas and coal. The country’s strategic response is also in part a countermeasure against US tariffs, sanctions, and broader diplomatic pressures.</p><p>Moreover, Chinese companies have been selling US-sourced LNG to more profitable markets in Europe and Asia, further contributing to the decline in shipments from the US. Similarly, China’s coal imports from the US have dwindled, from over $90 million in June 2024 to a few hundred dollars in June 2025.</p><p>While China had committed to purchasing more US energy and agricultural products under a 2020 trade agreement to help reduce its trade surplus, the Covid-19 pandemic disrupted those plans. With a growing trade imbalance and renewed friction under President Trump’s administration, China has recalibrated its energy imports to align with its broader foreign policy objectives.</p><h2><strong>Crucial energy deals at stake</strong></h2><p>As US Treasury Secretary Scott Bessent prepares to meet with Chinese counterparts in Stockholm next week, the reduction in energy imports will be a key issue in trade talks. Although the focus has been on semiconductor exports and rare earths, US energy exports remain an important tool for narrowing the trade deficit.</p><p>With the US threatening new tariffs on countries buying Russian energy, China finds itself at a crossroads. While Russian gas imports to China have surged in the wake of the war in Ukraine, the US could leverage its energy exports to attract China back into the fold. However, a growing number of Chinese officials are likely to view this as a strategy of “unilateral pressure” that China is increasingly willing to defy.</p>

While China had committed to purchasing more US energy and agricultural products under a 2020 trade agreement to help reduce its trade surplus, the Covid-19 pandemic disrupted those plans.

China’s imports of three major energy products from the United States plunged to near zero in June, marking a sharp shift that could further complicate ongoing trade talks between Washington DC and Beijing. Deliveries of American crude oil, liquefied natural gas (LNG), and coal hit rock bottom, reflecting both economic and geopolitical factors at play. The trend represents a significant challenge for the Biden administration as it looks to re-engage with China on resolving their trade disputes. No US crude imports for the first time in three years China’s decision to forgo American crude oil imports last month for the first time in nearly three years underscores a growing trend of diversifying energy supplies. In June 2024, Chinese imports of US crude were valued at nearly $800 million. By June 2025, however, no shipments had arrived at Chinese ports. The sudden halt follows the 10-15 per cent tariffs imposed on US energy products starting in February 2018, when the US-China trade war began. Rystad Energy’s Lin Ye told Bloomberg that the decline in US energy imports, especially crude, signals China’s strategic shift towards suppliers like Saudi Arabia and Russia. These nations now dominate China's energy market, while US oil barely cracks the top 10 on the customs reports. “The move away from US crude is not just about cost but also about sending a message in the context of broader geopolitical tensions,” Ye said. Diversification amid tariffs and sanctions The reduction in US energy imports comes as Beijing works to reduce reliance on American sources. In addition to Saudi Arabia and Russia, China has increasingly relied on alternative suppliers for natural gas and coal. The country’s strategic response is also in part a countermeasure against US tariffs, sanctions, and broader diplomatic pressures. Moreover, Chinese companies have been selling US-sourced LNG to more profitable markets in Europe and Asia, further contributing to the decline in shipments from the US. Similarly, China’s coal imports from the US have dwindled, from over $90 million in June 2024 to a few hundred dollars in June 2025. While China had committed to purchasing more US energy and agricultural products under a 2020 trade agreement to help reduce its trade surplus, the Covid-19 pandemic disrupted those plans. With a growing trade imbalance and renewed friction under President Trump’s administration, China has recalibrated its energy imports to align with its broader foreign policy objectives. Crucial energy deals at stake As US Treasury Secretary Scott Bessent prepares to meet with Chinese counterparts in Stockholm next week, the reduction in energy imports will be a key issue in trade talks. Although the focus has been on semiconductor exports and rare earths, US energy exports remain an important tool for narrowing the trade deficit. With the US threatening new tariffs on countries buying Russian energy, China finds itself at a crossroads. While Russian gas imports to China have surged in the wake of the war in Ukraine, the US could leverage its energy exports to attract China back into the fold. However, a growing number of Chinese officials are likely to view this as a strategy of “unilateral pressure” that China is increasingly willing to defy.

<p>While China had committed to purchasing more US energy and agricultural products under a 2020 trade agreement to help reduce its trade surplus, the Covid-19 pandemic disrupted those plans.</p>

China’s key US energy imports plunge amid trade tensions

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