China Almost Turns Off the Tap On US Energy Imports Ahead Of Crucial Trade Meet

China’s key energy imports from the U.S. reportedly dropped to near zero in June, an issue that could be discussed when the two sides meet again.

According to a Bloomberg News report, citing the latest Chinese customs data, Beijing did not import any crude oil from the U.S. for the first time in nearly three years in June. China imposed 15% levies on U.S. liquefied natural gas and coal, as well as 10% on oil products, in February following U.S. President Donald Trump's move to impose tariffs on Chinese goods.

Retail sentiment on Stocktwits about iShares China Large-Cap ETF (FXI) was in the ‘extremely bullish’ territory at the time of writing.

While key discussions in earlier meetings between the U.S. and China centered on rare earth minerals and AI chips, commodities could once again take center stage. Washington, D.C., is aiming to reduce trade deficits with key U.S. trade partners by increasing the sale of American energy products.

China is the world's largest buyer of crude oil. Last year, it reportedly imported crude worth about $800 million from the U.S.

The report stated that the U.S. did not ship any natural gas to China for the fourth consecutive month in June, partly due to Chinese firms reselling their deliveries to more profitable European and Asian markets. Beijing's coal imports also declined to just a few hundred dollars, compared with $90 million for the same month a year earlier.

U.S. Treasury Secretary Scott Bessent is expected to meet with Chinese officials in Stockholm next week. The planned trade discussions in the Swedish capital will aim to prolong a tariff truce that is set to expire on August 12.

China buys the bulk of its oil from Saudi Arabia and Russia. However, its supplies could come under threat as the U.S. is considering imposing 100% tariffs on countries that import Russian oil. The U.S. will also likely discuss with China about its purchases of Iranian crude, Bessent said earlier this month.

Also See: JPMorgan, BofA CEOs Subpoenaed Over Chinese Battery Giant CATL’s Hong Kong IPO: 'Should Not Be Helping Beijing Bankroll Abuse'

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