China is seeking to diversify currency transactions and reduce its reliance on the US dollar in international trade. In this context, China has entered into a bilateral agreement with Brazil to purchase liquefied natural gas (LNG) in yuan, facilitated by a French company.
Additionally, China and Qatar have reached a significant agreement regarding LNG, with both countries agreeing to cooperate for a period of 27 years. Qatar and the United Arab Emirates are considered emerging economies and were upgraded in the emerging markets classification in 2014.
Qatar Energy Company has partnered with China National Petroleum Corporation (CNPC), allowing China to acquire four million metric tons of LNG annually. Qatar has also entered into a similar agreement with China Petroleum & Chemical Corporation (Sinopec).
Opinions among US officials vary on this matter, with some praising China’s previous reliance on American LNG reserves, while others see China’s gas purchases as beneficial for both sides.
Some consider China a “friendly competitor” at present, as China’s capital investment helps in the construction of LNG export terminals and increases demand for drilling in areas like Louisiana and Texas.