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US stands to lose more from Chinese LNG tariffs as China diversifies energy security strategy

2018-08-08 09:54:10       source:Global Times

August 7, 2018

Liquefied natural gas (LNG) is a better weapon in the hands of China than in those of the US because of China's more diversified energy security strategy, a Chinese expert said Tuesday as heightened trade tensions between the world's number one and number two economies now threaten the LNG trade.

The comments came as China launched countermeasures on Friday with proposed tariffs on $60 billion worth of US goods, including a 25 percent tariff on imports of US LNG. 

Jin Lei, an associate professor at the China University of Petroleum, told the Global Times on Tuesday that while both sides stand to lose in an LNG spat, the US stands to bear the brunt of the damage if China turns LNG into a weapon.

The sector had previously been untouched by the trade war, and the commodity was excluded from the initial round of Chinese retaliatory tariffs on $50 billion worth of US goods following US President Donald Trump's decision to place import tariffs on Chinese goods. 

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