WASHINGTON: China has agreed to import at least 10 million tonnes of coal from the United States next year and again in 2028, according to the White House, in a sign of further progress in easing trade frictions between the world’s two largest economies.
The two sides will also pursue more favourable tariffs on US$30bil of non-sensitive goods from either nation as part of the agreement reached under the US-China Board of Trade, the White House said in a statement. “US products eligible for preferential tariffs include agricultural goods, seafood, timber, cosmetics and medical devices.”
Chinese consumer items such as small appliances, toys, holiday decorations and children’s car seats are covered in the deal.
The moves follow Donald Trump’s summit with China’s Xi Jinping this week in Washington. Trade has been a point of contention between the two countries, with tariffs a defining feature of Trump’s second term in office and Beijing being one of his main targets for the levies.
Coal production is high on the US president’s agenda, and his administration has moved to revitalise the industry to consolidate its place as a premium source of energy for the country.
Trump said in June he would marshal hundreds of millions of taxpayer dollars in an effort to strengthen the sector.
The agreement with China comes amid soaring energy prices in the United States, with electricity costs climbing on the back of surging demand from new factories and data centres fuelling the artificial-intelligence industry.
Calls to China’s State Council Information Office and Commerce Ministry went unanswered outside normal business hours last Saturday. — Bloomberg
