US ethane exports to China: Trade war heats up: As China clamps down on rare earths, Trump hits back by blocking ethane exports

The Trump administration is moving to block millions of barrels of US ethane exports to China, a critical blow to the global petrochemical supply chain and a direct response to Beijing’s tightening grip on rare earth metals, as per a report.

US Ethane Exporters To Face Major Setback

The largest exporter of ethane in the nation, Enterprise Products Partners, said on June 4 that the US Commerce Department intends to reject the approval to export 2.2 million barrels of ethane from Texas to China, according to Fortune. The Trump administration’s plan came after China limited exports of some rare earth elements—materials critical to American tech and automotive production, as per the report.

For Enterprise and other shippers such as Energy Transfer and Phillips 66, the ruling is poised to disrupt a key part of their business, according to the report. The managing director of analytics at RBN Energy, Kristen Holmquist said, “The [Commerce] decision has the potential to ruin the U.S. ethane market and disrupt global flows,” quoted Fortune.

ALSO READ: Groveling texts and voicemails? Blake Lively allegedly begs for Taylor Swift’s attention amid ghosting buzz

China’s Petrochemical Plans in Jeopardy

But the ripple impact is set to hit harder in China. With its fast-paced petrochemical growth highly dependent on US ethane, the sole major world exporter of ethane, as per the report. Almost half of all US ethane exports are sent to China, and the cargoes are not easily redirected to other nations, reported Fortune.


According to the report, ethane is the most common building block for petrochemicals and plastics. East Daley Analytics’ Julian Renton pointed out that “If the restriction holds, China’s planned petrochemical expansions could become obsolete on arrival,” as quoted in the report. Renton also mentioned that, “Projects under construction may stall. Existing plants could face critical feedstock shortfalls. China bet billions on U.S. ethane—and that bet just got rerated overnight,” quoted Fortune.

FAQs

Why is the US blocking ethane exports to China now?
It’s in response to China restricting exports of rare earth metals, which are vital to US industries, as per Fortune.

What is ethane used for?
Ethane is primarily used to make plastics and other petrochemical products.

Source link

Visited 1 times, 1 visit(s) today

Related Article

Pro wrestling finds footing in China with sold-out Beijing show

Pro wrestling finds footing in China with sold-out Beijing show

IE 11 is not supported. For an optimal experience visit our site on another browser. Now Playing Pro wrestling finds footing in China with sold-out Beijing show 02:28 UP NEXT DOJ says former football coach hacked private photos of thousands of female athletes 02:22 Coco Gauff Heads to French Open Final Against Aryna Sabalenka 02:29

7 June 2025
Beijing Academy of Artificial Intelligence director Wang Zhongyuan speaks at the institute’s annual conference on Friday. Photo: Handout

Beijing academy unveils open-source ‘RoboBrain’ AI model for China’s humanoid robots

The Beijing Academy of Artificial Intelligence (BAAI), a non-profit research laboratory in China, launched on Friday a series of new open-source artificial intelligence (AI) models designed to be the “brain” of robots, as the country rushes to build smarter machines. The use of powerful AI models in China’s booming robotics industry could accelerate the development

7 June 2025
China's driverless lorries hope to expand

China’s driverless lorries hope to expand

Stephen McDonell China correspondent Watch as the BBC rides on board a driverless truck They rumble down the highway between Beijing and Tianjin port: big lorries, loaded up and fully able to navigate themselves. Sure, there is a safety driver in the seat, as per government regulations, but these lorries don’t require them, and many

7 June 2025

London Showdown: US and China set for new round of trade talks on Monday

The United States and China are set to restart high-level trade talks in London on Monday, marking a new phase in efforts to resolve longstanding economic tensions between the world’s two largest economies. President Donald Trump announced the upcoming talks on Friday, calling a recent conversation with Chinese President Xi Jinping “very positive.” The meeting

6 June 2025
Inside Washington

Trump sends Bessent and Lutnick to haggle with Chinese on tariff war after Xi chat

Sign up for the daily Inside Washington email for exclusive US coverage and analysis sent to your inbox Get our free Inside Washington email Get our free Inside Washington email Three members of Donald Trump’s cabinet will meet with Chinese officials in London on Monday in an effort to deescalate or resolve the unprovoked trade

6 June 2025
China’s Xi Jinping meets Panchen Lama, urges continued ‘sinicisation of religion’

China’s Xi Jinping meets Panchen Lama, urges continued ‘sinicisation of religion’

Chinese President Xi Jinping met the Panchen Lama on Friday and called for continued efforts to promote the “sinicisation of religion”, state media reports said. The call from Xi comes exactly one month before the exiled Dalai Lama’s critical 90th birthday, when the Tibetan spiritual leader has indicated he may reveal his preferred method for

6 June 2025
1634214 a.jpg

China And The Next Auto Revolution – New Technology

Over the past century, the automotive industry has undergone a major manufacturing revolution roughly every 40 years. From Ford’s introduction of the assembly line to the rise of lean manufacturing, and later the advancement of platformization and modularization, each wave of innovation has profoundly reshaped the industry’s landscape (figure 1). More than 40 years have

6 June 2025
0
Would love your thoughts, please comment.x
()
x