China commits to US coal purchases after summit

China has pledged to purchase 10 million metric tonnes of US coal in 2027 and a further 10 million metric tonnes in 2028, as part of a U.S.-China economic agreement reached during President Donald Trump's talks with President Xi Jinping in Washington. The commitment, announced after Xi's three-day state visit, complements a broader pact to secure more favorable tariff treatment for $30 billion of non-sensitive goods exchanged between the two nations.

The tariff discussions encompass a range of items, including agricultural products, fish and seafood, logs, wood products, cosmetics, and medical devices. In return, China has offered to treat certain U.S. goods, such as small appliances, toys, holiday decorations, and children's car seats, more favorably. A working group has been formed to tackle market-access barriers in agriculture, a contentious issue in the ongoing negotiations.

The tariff truce has been extended until January 10, 2027, providing negotiators with additional time to achieve a broader economic settlement. This coal purchasing agreement represents a tangible commitment to expanding U.S. energy exports, aligning with President Trump's efforts to boost domestic coal production. Despite the easing of trade tensions, several disputes remain unresolved, including those involving strategic goods and supply-chain shortages.

The U.S. and China also established a Board of Trade to facilitate government-to-government discussions on investment opportunities and challenges faced by commercially significant projects.