Report for a US company doing business in China:
Cheniere Energy
4/17/20
Question 1:
Cheniere Energy’s business strategy is very aligned with China’s governmental plans for
the development of China. This alignment is somewhat indirect, as Cheniere Energy has the
liquified natural gas (LNG) that China seeks to make a major fueling source for their country’s
power. China is working towards reducing air pollution and becoming a more environmentally
friendly country, therefore they are taking steps to shift their energy consumption off of coal
and replace the power demand with LNG, which is the greenest of the fossil fuels. Because
China is making these steps to use more LNG, Cheniere Energy is strategizing to sell more LNG
to China and further establish their company as one of China’s LNG suppliers.
Jack Fusco, CEO of Cheniere Energy, told CNBC that, “We believe it’s just the beginning
of a long-term relationship and we’re trying to help both countries [China and USA] have a
better relationship,”(Source 2). From establishing such a relationship between Cheniere and
China, Cheniere demonstrates that they fulfill their end of the agreements made between both
countries and from having small successes, larger opportunities will in turn arise. From
Cheinere providing a “…a very competitive, affordable, reliable opportunity for them to get to a
cleaner burning fuel source…” Cheniere is demonstrating that they are “…working with China
on its air-quality issues…” in that shared strategy of helping make China a cleaner consumer of
energy. (Source 2).
