A trade war which has been going on between China and the United States has had a major impact on both of the country’s exports but it did seem like a resolution was on the cards in January when both the rivals had decided to go ahead with one deal which had left China with a total in $26.2 billion of energy products for the year.
In the wake of the crisis which has been caused because of the epidemic of Coronavirus, China has made a decision to reduce the tariffs to half. These additional tariffs had been imposed on the $75 billion worth goods from United States form the month of September of 2019. Though, this reduction is not going to affect the tariffs which had been imposed by China on the LNG from United States.
As there hasn’t been a single cargo from United States which has been sent to China post the second quarter of the last year, the Rystad Energy has estimated that the LNG imports are going to begin only when the tariffs are lifted or in case any political support is given by the government of China.
The organization expects that there is going to be a reduction or a removal altogether of the tariffs on the imports. Though the calculations are showing that the volumes are in all likelihood going to remain very low because of both the effect of coronavirus and the cost-competitiveness of the other suppliers of the world on the demand of LNG.
Long term projects need to have the term contracts for the securing of financing of developments and the biggest sponsors as per the organization is going to be the import driven market of CHian.