A prominent American business group in China has called for expanded energy trade between the world’s two largest economies – a move first floated by US President Donald Trump during his state visit to Beijing last week. Analysts, however, warn that uncompetitive pricing could limit Chinese demand.
“Energy remains a centrepiece of the bilateral relationship,” said Markel Hubinette, who sits on the American Chamber of Commerce in China’s board of governors.
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Speaking at the Global Trade and Investment Promotion Summit in Beijing, Hubinette noted that China was the world’s largest energy market while the United States was the world’s largest oil producer.
“Yet the percentage of US production that ends up in China is very, very small, compared to other countries,” he said on Monday. “Expanding this trade is a practical way to meet China’s growth in demand, support US exports and contribute to a meaningful bilateral relationship.”
Hubinette’s comments followed Trump’s state visit to Beijing last week, during which the US president announced the two countries had secured energy deals.
“They’ve agreed they want to buy oil from the United States,” Trump told Fox News on Thursday, adding that Chinese ships would soon be sent to Texas, Louisiana and Alaska, and that liquefied natural gas (LNG) was also discussed.
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“They have an insatiable appetite for energy, and we have unlimited energy,” Trump said.