Against a backdrop of crippling Middle East energy supply disruptions and tightening fuel markets across the Asia-Pacific, China has announced a major strategic shift, resuming large-scale purchases of United States liquefied natural gas (LNG) and crude oil after nearly a year and a half of suspended trade tied to escalating bilateral trade tensions.
The pivot comes in the wake of U.S.-Israeli military operations against Iran launched on February 28, which have sent shockwaves through global energy markets. Heightened risks of drone and missile attacks have caused a sharp drop in tanker traffic through the Strait of Hormuz, the world’s busiest chokepoint for crude oil and LNG exports, triggering cascading supply shortages across Asia. By early March, the crisis had forced Thailand to suspend fuel exports on March 6, with China following just five days later when the National Development and Reform Commission (NDRC) ordered a full halt to gasoline, diesel, and aviation fuel shipments to overseas markets.
According to tanker tracking data cited by Nikkei Asia, approximately 600,000 barrels per day of American crude are scheduled for loading in April, marking the formal resumption of bilateral energy trade after purchases were halted in early 2025 amid new U.S. tariffs imposed by the Trump administration. Some international observers have framed the move as a major concession from Beijing, or even a strategic goodwill gesture ahead of a scheduled May summit between U.S. President Donald Trump and Chinese President Xi Jinping, set for May 13-14 in China.
Unlike the full halt to domestic refined fuel exports, China has moved to implement a system of targeted exemptions for the April export ban, as confirmed by industry sources speaking to Reuters. The curbs are expected to be extended through the month, with only small volumes of gasoline, diesel, and jet fuel approved for shipment to Southeast Asian nations facing acute supply crunches. Total April export quotas are projected to land between 150,000 and 300,000 metric tons, with shipments earmarked for Bangladesh, Myanmar, Sri Lanka, the Maldives, and Vietnam. This targeted easing, analysts note, allows Beijing to preserve tight domestic fuel supplies while retaining critical market share and expanding political influence across the region at a moment of widespread energy insecurity.
Chinese officials and commentators have rejected the framing of the energy import pivot as a concession, instead positioning the move as a major competitive victory over U.S. ally Japan in securing access to American energy supplies. Writing in a recent op-ed, Sichuan-based columnist Liang Mi noted that Japanese Prime Minister Sanae Takaichi returned from a high-profile trip to Washington with only symbolic alliance commitments, while China quickly locked in the large-volume energy shipments that Tokyo had spent months negotiating.
“Japan’s refiners only booked around 3 million barrels of U.S. crude for April – that is just equal to five days of China’s planned purchases,” Liang explained. At current market prices, China’s 18 million barrels of monthly U.S. crude imports are worth close to $10 billion, a scale that Tokyo could not match. Liang added that the United States prioritizes its own commercial interests over alliance commitments, noting that “as the world’s largest energy importer, China has strong, stable demand for crude and natural gas – and larger buyers naturally get higher priority.” He also noted that the resumption of purchases helps build a constructive atmosphere ahead of the May high-level summit between the two global powers.
The resumption of U.S. energy purchases also reflects constrained strategic options for Beijing, analysts outside of China point out, as existing supply disruptions from Venezuela and the Middle East have limited alternative sources for China’s growing energy demand. But Chinese commentators emphasize that the country’s robust domestic energy infrastructure and strategic reserves leave it well-positioned to navigate the global crisis. Fujian-based commentator Chenkai noted that China produces roughly 200 million tonnes of domestic crude annually, and holds 270 million tonnes in strategic reserves – well above the International Energy Agency’s 90-day safety benchmark. “China could sustain itself for more than a year even if all imports were cut off,” Chenkai wrote.
By pausing refined fuel exports, China has effectively withdrawn millions of tonnes of product from the global market, putting immediate pressure on net importers like Japan and South Korea, and even leaving the U.S. vulnerable if the crisis escalates, Chenkai argued. “This policy reflects preparation for worst-case scenarios and a reassessment of China’s role in the global energy chain. China is not only a buyer but also a major refiner and exporter. In critical moments, we can flex our muscle by restricting fuel exports,” he added.
The current energy crisis has already had severe impacts across Asia. In Southeast Asia, more than 40 percent of gas stations in Laos have closed due to supply shortfalls, while Cambodia and Thailand have been forced to implement fuel rationing and price controls. Vietnam has canceled hundreds of domestic and international flights after running low on aviation fuel following China’s export ban. In South Asia, India, Pakistan, and Bangladesh have seen fuel prices skyrocket and have been forced to implement emergency conservation measures, while even Japan and South Korea, which hold significant strategic reserves, remain exposed to further disruptions through the Strait of Hormuz.
Chinese Foreign Ministry spokesperson Mao Ning framed the global energy crisis as a direct consequence of U.S. military action in the region. “The root cause of the fuel shortages facing the global energy market lies in the tense situation in the Middle East,” Mao Ning said Thursday. “The pressing task is to put an end to U.S. military operations at once and prevent the turmoil in the Middle East from further impacting the global economy.”
Beyond the resumption of U.S. crude imports, China has emerged as a critical swing supplier of LNG across Asia amid the crisis. Data from energy analysts ICIS, Kpler, and Vortexa shows that China re-exported a record 8 to 10 LNG cargoes in March, bringing year-to-date resales to 1.31 million tonnes across 19 shipments, mostly to South Korea and Thailand, with additional cargoes going to Japan, India, and the Philippines. Chinese firms have been able to capitalize on sky-high regional spot prices, offloading excess cargoes at a premium while domestic demand has softened.
While the NDRC ordered a full halt to refined fuel exports in March, exports have not stopped entirely, with targeted exemptions granted to key regional partners facing emergency shortages. When the Philippines declared a national energy emergency in late March, reporting less than 10 days of diesel reserves remaining, China dispatched two tankers carrying more than 260,000 barrels of diesel to the country. China now supplies more than half of the Philippines’ total diesel imports, making it a core pillar of the country’s energy security. China also sent a 100,000-barrel diesel tanker to Vietnam to address acute shortages there.
One Sichuan-based military affairs commentator noted that these targeted shipments send a clear political and economic message to the region. “Cutting supply is easy, but the consequences are far-reaching: 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 wrote. Politically, he added, the actions make clear which countries neighboring nations can rely on when energy crises hit.
For his part, U.S. President Donald Trump claimed in a national address Wednesday that American military operations have “decimated” Iran both militarily and economically, and called on nations dependent on Strait of Hormuz oil shipments to take primary responsibility for safeguarding the critical shipping route. Trump said Washington would offer support, but shifted the burden of security to regional energy importers, leaving a power gap that China has moved quickly to fill through its targeted energy policies.
