China boosts crude oil, LNG imports from Canada as Ottawa-Washington relations sour

China's imports of crude oil and liquefied natural gas (LNG) from Canada surged in August, driven by escalating trade tensions between Ottawa and Washington. According to customs data released on Sunday, China's crude oil imports from Canada increased by nearly 35 percent year-on-year, while their value rose 64 percent to US$782.3 million.

In contrast, overall crude oil imports for China declined by nearly 23 percent year-on-year. Meanwhile, China's imports of Canadian LNG surged 227 percent year-on-year, with the value of sulphur imports jumping 398 percent, despite the volume rising by less than 20 percent. The trade dispute between the US and Canada led to the imposition of tariffs on Canadian goods, prompting Canada to retaliate with tariffs on US products.

Despite this, China-Canada trade has stabilized since the beginning of the year, following years of diplomatic and trade tensions. Canada is becoming an emerging energy partner for China, which has diversified its oil reserves in recent years, making it less reliant on Russian imports. However, Beijing's diversification strategy limits how much it can increase its reliance on Russian energy products.