China’s Trade Ministry has announced a plan to open up more than 40 percent of its markets in the U.S. to American imports, including liquefied natural gas, to offset the effect of the trade embargo on the country’s economy.
China is the world’s second-largest exporter of liquefiesed natural gas (LNG) and the fourth-largest supplier of crude oil to the U to the United States.
Under the plan, China’s biggest LNG producer, Sinopec, will be allowed to export liquefy to the American market.
However, Sinofc will be required to maintain its production of liquified natural gas at or below the internationally recognized threshold of 10 million cubic meters per day.
In response to the announcement, the Trump administration is expected to issue a final trade embargo directive later this week, with a deadline of Dec. 17 for companies and individuals to comply.
In a statement issued on Wednesday, a spokesperson for the Department of Commerce’s Bureau of Industry and Security (BIS), which oversees the BIS and other foreign trade agencies, said that China’s move would “result in significant trade disruptions in the United Sates” that would “cause harm to U. S. consumers, businesses and the global economy.”
China’s move is “not a final decision,” the spokesperson said.
China is expected, however, to impose a new trade embargo of up to $600 billion for the period from Dec. 1 through June 30.
The U.K. and the European Union are expected to be next to impose tariffs on Chinese imports, although other countries, including Australia and Japan, are not expected to impose any retaliatory measures.
The U.N. Security Council last month approved a draft resolution aimed at limiting China’s economic activities and pressuring Beijing to lift the trade restrictions imposed in the wake of the U and North Korea’s nuclear tests last year.
The resolution was drafted by Britain, France, Germany, Japan, South Korea, Spain, Ukraine, the United Arab Emirates, Saudi Arabia, and the United Kingdom, and it would require Beijing to make “immediate efforts” to address its “non-compliance with its obligations under the United Nations Charter and the Beijing Comprehensive Economic Partnership.”