A real solid trade deal between the US and China would be a great thing. That is if its a real and solid deal at all. As much as I like LNG and as much as I am in favor of more LNG anywhere, LNG exports alone as the rationale for a trade deal is a bad idea. Because the things at stake in this trade war are far bigger than some LNG deals. They are far bigger than simply some export revenue or narrowing the trade deficit with China. What’s at stake is the credibility of the world before a country that has played the global economic system like a fiddle for decades. A country that has signed tons of agreements with no intention to hold their side of the bargain, a country that has lied and schemed in order to get what it wants and a country that clearly thinks that the world is its oyster and that it may just do as it pleases. And that country is China. Its time to show that the world means business when it says it expects China to either behave like a global citizen or risk its wrath. Allowing China to buy its way out once more would be the wrong signal. And most of all it would be a colossal disservice to China itself as it needs to mend its ways for their own benefit.
Here’s another reason for Presidents Donald Trump and Xi Jinping to seal a swift trade deal: it could put the U.S. on track to become China’s biggest supplier of liquefied natural gas, according to Morgan Stanley.