China is moving to resume large-scale purchases of United States liquefied natural gas (LNG) and crude oil, as supply disruptions in the Middle East and tightening fuel markets across Asia force Beijing to recalibrate its energy strategy.
Some observers view the move as a significant concession by Beijing, or even a strategic reward to Washington, after China halted US LNG imports in early 2025 when trade tensions escalated under US President Donald Trump’s tariff measures.
In return, China will have sufficient fuel supply to resume gasoline exports to Asian countries, helping it maintain market share and increase political influence in the region amid tightening fuel supplies. On March 11, the National Development and Reform Commission (NDRC) ordered a halt to exports of gasoline, diesel and aviation fuel.
According to Nikkei Asia, China is restarting imports of US energy, with tanker tracking data indicating that around 600,000 barrels per day of American crude oil are scheduled to be loaded in April. The shift marks a resumption of energy trade between the United States and China following a suspension of purchases triggered by earlier trade tensions.
Industry sources told Reuters that China is likely to extend its refined fuel export curbs through April, with limited exemptions for countries facing acute shortages. Talks are underway to allow small volumes of diesel, jet fuel and gasoline to Southeast Asian markets.
Export quotas for April could range from about 150,000 to 300,000 metric tons, with shipments likely to Bangladesh, Myanmar, Sri Lanka, the Maldives and Vietnam. The selective easing highlights Beijing’s effort to maintain regional market influence while managing tight domestic supply.
The resumption of China’s purchases of US crude oil and LNG appears to reflect limited strategic flexibility for Beijing, as disruptions to supplies from Venezuela and the Middle East constrain its options.
However, Chinese state media and commentators have framed the development differently, portraying it as a competitive win over Japan in securing US energy supplies.
“Japanese Prime Minister Sanae Takaichi returned from the US with ‘alliance commitments’, only to see China swiftly secure large volumes of US crude and LNG that Japan had hoped to obtain,” Liang Mi, a Sichuan-based columnist, writes in an article on Thursday.
He says Tokyo had made every gesture and shown full “sincerity” to the US to secure energy supplies, but failed to match China’s scale.
“China is buying about 600,000 barrels per day, or roughly 18 million barrels a month, worth close to US$10 billion at current prices,” Liang says. “Japan’s refiners booked only about 3 million barrels for April, just equivalent to China’s five-day purchases. The US does not prioritize allies; it prioritizes its own interests.”
“As the world’s largest energy importer, China has a strong and stable demand for crude oil and natural gas. Whoever buys more can enjoy a higher priority,” he says.
He adds that China’s decision to resume large-scale energy purchases from the US comes ahead of a planned leaders’ meeting between Beijing and Washington in May, and that the deal helps create a more constructive atmosphere for high-level dialogue.
Trump is set to visit China and meet with Chinese President Xi Jinping on May 13-14.
Fuel shortages
Since the US and Israel launched attacks on Iran on February 28, tanker traffic through the Strait of Hormuz has fallen sharply amid the threat of Iranian drones and missile strikes.
By early March, supply disruptions had begun to ripple across Asia, with Thailand suspending fuel exports on March 6 and China halting gasoline and diesel exports on March 11, tightening regional availability.
The impact has been severe across Asia. In Southeast Asia, over 40% of gas stations in Laos have closed, and disruptions in Cambodia and Thailand have prompted rationing and price controls, while many flights in Vietnam have been canceled due to aviation fuel shortages following China’s export ban.
In South Asia, India, Pakistan and Bangladesh face rising prices and emergency conservation due to reliance on Middle Eastern supply. Even Japan and South Korea, despite reserves, remain exposed to disruptions through the Strait of Hormuz.
Beijing now appears to see the situation as an opportunity to criticize the US and expand its political influence in Asia.
“The root cause of the fuel shortages facing the global energy market lies in the tense situation in the Middle East,” Chinese Foreign Ministry spokesperson Mao Ning said on Thursday. “The pressing task is to put an end to US military operations at once and prevent the turmoil in the Middle East from further impacting the global economy.”
“Many people underestimate China’s oil industry, assuming it relies heavily on imports,” writes a Fujian-based commentator using the pen name Chenkai. “In fact, China’s domestic crude production has reached about 200 million tonnes a year, and with strategic reserves of about 270 million tonnes, well above the 90-day safety benchmark. China could sustain itself for more than a year even if imports were cut off.”
He says that by halting fuel exports, China has effectively removed part of the global supply, putting countries such as Japan and South Korea under immediate pressure. He says if the situation worsens, even the US would feel the strain, as global market disruptions affect all major consumers.
“This policy reflects preparation for worst-case scenarios and a reassessment of China’s role in the global energy chain,” he adds. “China is not only a buyer but also a refiner and exporter. In critical moments, we can flex our muscle by restricting fuel exports.”
Exemptions for export halt
A Reuters report on Wednesday said Chinese firms are offloading record LNG volumes, capitalizing on high spot prices as domestic supply and pipeline inflows meet weaker demand. This contrasts with Asian buyers scrambling to replace goods disrupted by issues related to Iran.
As the world’s top LNG buyer, China re-exported eight to 10 cargoes in March, a record high, according to ICIS, Kpler and Vortexa. Year-to-date resales total about 1.31 million tonnes across 19 cargoes, mainly to South Korea and Thailand, as well as Japan, India and the Philippines, reinforcing its role as a swing supplier in Asia.
“The NDRC ordered refiners to halt exports of gasoline, diesel and jet fuel in March,” writes a Sichuan-based commentator in a military column. “But exports have not stopped entirely, with countries such as the Philippines and Vietnam still receiving shipments.”
He says that the Philippines had less than 10 days of diesel by late March and declared an energy emergency, so China dispatched two tankers with over 260,000 barrels of diesel to the country. He adds that China now supplies more than half of the Philippines’ diesel imports and is a key pillar of its energy security. Besides, China also sent a tanker with about 100,000 barrels to Vietnam.
“Cutting supply is easy, but the consequences are far-reaching,” he writes. “Disruptions could halt flights, logistics and power generation across the region. By continuing shipments to key partners, China signals that while differences remain, it will still meet essential needs, underscoring its influence in regional energy markets.”
He adds that, politically, China’s actions have sent a clear message to neighboring countries about whom to rely on in times of crisis.
In an address to the nation on Wednesday, Trump said the US had “decimated” Iran militarily and economically, and called on countries that rely on oil shipments through the Strait of Hormuz to take the lead in safeguarding the passage.
He said Washington would offer support, but stressed that nations dependent on the route should assume primary responsibility for protecting critical energy flows.
Read: China steps into Iran breach as investments face fire
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