China's Need For US Chemicals Greater Than US Need For Rare Earths

US petrochemical producers are heavily reliant on China as a major buyer of their feedstocks. China's dependence on US petrochemicals, particularly propane, surpasses the US reliance on Chinese rare earth metals. In 2024, China imported significant amounts of US petrochemical feedstocks, valued at billions of dollars. China's petrochemical industry uses US feedstocks to produce various everyday products. US producers have seen a substantial increase in the market value of their feedstocks due to Chinese demand. Recent tariffs imposed by both the US and China have disrupted the trade of these crucial materials. China's propane dehydrogenation plants may face shutdowns due to the high cost or lack of alternative suppliers. While China removed tariffs on US ethane, the US government is now restricting ethane exports to China. These restrictions will impact Chinese plants dependent on US ethane for production. The ongoing trade war is now significantly impacting the commodities sector.