228
Michael Meadin, director of the Institute for Energy Studies at the University of
Oxford, said China was unlikely to be able to meet its commitments in the first
phase of the trade deal because it was too ambitious. It is natural that tensions in
relations between the two countries will increase if China fails to fulfill its obligations under the trade agreement on energy imports. The outbreak of the coronavirus
and the Chinese government’s lack of transparency in dealing with the outbreak of
the virus and the lack of timely information on the issue, which has been protested
by Western governments, will also widen the gap between Washington and Beijing.
It should not be overlooked that the risk of possible influence by Russia, China, and
Iran on the 2020 US presidential election has been repeatedly emphasized in the
media (www.cnbc.com 2020a, b, c).
Need to Increase US Oil Imports
Sushant Gupta, Wood Mackenzie’s research director, believes that China must
import an average of 1.5 million barrels of oil per day in 2020 and 2021 to achieve
the goals of the first phase of its trade deal with the United States. Meanwhile,
China’s oil imports declined due to the Coronavirus epidemic, and the country
replenished its strategic reserves with cheap oil. As well as storing oil in tankers, in
the event of stability in the oil market and possible price increases, China will consume stored oil in the domestic market or even become a cross-sectional oil exporter.
Since April 2020, Chinese refineries have further reduced oil imports from the
United States. According to Reuters, China imported an average of about 940,000
barrels per day from the United States in July 2020 and was expected to import an
average of 1.01 million barrels per day in August 2020. If China imported this
amount of oil from the United States, it would achieve a historic record in oil imports
from the United States (www.cnbc.com 2020a, b, c).
LNG Imports
East Asia, and especially China, is a major market for LNG manufacturers.
Accordingly, the major LNG producing countries are seeking to increase their share
of China’s natural gas market. China’s LNG imports from the United States in the
first 6 months of 2020 increased almost three times compared to the same period the
year previously and reached 878 million and 754 thousand tons. The United States
has been successful in increasing its share of the Chinese LNG market. Given the
available figures, it is unlikely that China would be able to meet its commitments to
import energy products from the United States by the end of 2020. Except for LNG
imports, which show an increase, imports could not be realized as expected (www.
reuters.com 2020a, b, c, d, e, f, g, h, i).
6 Trump Energy Diplomacy
Michael Meadin, director of the Institute for Energy Studies at the University of
Oxford, said China was unlikely to be able to meet its commitments in the first
phase of the trade deal because it was too ambitious. It is natural that tensions in
relations between the two countries will increase if China fails to fulfill its obligations under the trade agreement on energy imports. The outbreak of the coronavirus
and the Chinese government’s lack of transparency in dealing with the outbreak of
the virus and the lack of timely information on the issue, which has been protested
by Western governments, will also widen the gap between Washington and Beijing.
It should not be overlooked that the risk of possible influence by Russia, China, and
Iran on the 2020 US presidential election has been repeatedly emphasized in the
media (www.cnbc.com 2020a, b, c).
Need to Increase US Oil Imports
Sushant Gupta, Wood Mackenzie’s research director, believes that China must
import an average of 1.5 million barrels of oil per day in 2020 and 2021 to achieve
the goals of the first phase of its trade deal with the United States. Meanwhile,
China’s oil imports declined due to the Coronavirus epidemic, and the country
replenished its strategic reserves with cheap oil. As well as storing oil in tankers, in
the event of stability in the oil market and possible price increases, China will consume stored oil in the domestic market or even become a cross-sectional oil exporter.
Since April 2020, Chinese refineries have further reduced oil imports from the
United States. According to Reuters, China imported an average of about 940,000
barrels per day from the United States in July 2020 and was expected to import an
average of 1.01 million barrels per day in August 2020. If China imported this
amount of oil from the United States, it would achieve a historic record in oil imports
from the United States (www.cnbc.com 2020a, b, c).
LNG Imports
East Asia, and especially China, is a major market for LNG manufacturers.
Accordingly, the major LNG producing countries are seeking to increase their share
of China’s natural gas market. China’s LNG imports from the United States in the
first 6 months of 2020 increased almost three times compared to the same period the
year previously and reached 878 million and 754 thousand tons. The United States
has been successful in increasing its share of the Chinese LNG market. Given the
available figures, it is unlikely that China would be able to meet its commitments to
import energy products from the United States by the end of 2020. Except for LNG
imports, which show an increase, imports could not be realized as expected (www.
reuters.com 2020a, b, c, d, e, f, g, h, i).
6 Trump Energy Diplomacy