U.S. Energy To See Huge Investments From China

China wants to secure its supply of LNG.
During President Trump’s visit to China, the U. S. signed US$250 billion worth of potential trade and investment deals that would boost American exports to China and Chinese investment in the United States.
The two single largest potential deals were signed in the energy sector at the official U. S.-China Business Exchange, which took place on November 8th and 9th during President Trump’s visit.
The agreements are just memorandums of understanding (MoU), not final contracts, but they set the stage for a stronger energy relationship between the two powerhouses of the global energy production and consumption.
There is some concern that Chinese investment in U. S. energy could undermine free market principles. On the Chinese side, it’s unclear if Beijing is convinced that the U. S. will not use energy to retaliate against China by cutting supplies if disputes or disagreements escalate, Forbes contributor Sara Hsu writes.
The White House described the potential deals as such ‘that will create jobs for American workers, increase United States exports to China, and stimulate investment in American communities.’
West Virginia and Alaska were the two biggest beneficiaries of potential deals for Chinese investment, both which are in the energy sector.

This post was published at Wolf Street on Nov 27, 2017.