LF-BJMB
China is said to mull more US coal imports to cut deficit

China is said to mull more US coal imports to cut deficit


China is considering a plan to buy more American coal as part of an effort to narrow its trade deficit with the U.S., according to people with knowledge of the matter.

Chinese officials are currently looking at boosting purchases from West Virginia in particular, said the people, who asked not to be identified because they’re not authorized to speak publicly. They didn’t say whether Beijing is looking at buying more supplies from other states. A final decision hasn’t been made, they said.

The country’s top economic planner, the National Development and Reform Commission, referred questions to the National Energy Administration; officials there didn’t reply to an email seeking comment.

China this month pledged to increase purchases of U.S. energy and agricultural goods as a way to reduce its $375 billion merchandise trade deficit and diffuse an escalating trade war between the world’s biggest economies. More imports by the Asian nation would be a boon for American coal-producing states — including West Virginia — that supported Donald Trump’s presidency on the back of his pledge to revive the ailing industry.

While China pursues a long-term goal of lowering coal’s share of its energy mix, the country still produces, consumes and imports more of the fuel than any other nation. It purchased 271 million metric tons from overseas last year, according to customs data. The U.S. exported about 3.2 million short tons to China, data from the Energy Information Administration show.

The total value of U.S. coal exported to China last year was about $395 million, based on an average price of $122 per ton, Andrew Cosgrove, a Bloomberg Intelligence analyst said in an email. About 90 percent was metallurgical coal, which is used to make steel, he said.

The U.S. more than doubled coal exports to Asia in 2017 to 32.8 million tons, while total overseas shipments rose 61 percent year-on-year. India was the biggest importer of thermal coal, used in coal-fired power stations, according to the EIA.

Trump has promised to revive the U.S. coal industry by lifting restrictions on it. In February 2017, he signed legislation repealing a regulation meant to protect streams from the effects of coal mining. In October, his administration proposed the repeal of the Clean Power Act, which was designed to cut carbon dioxide emissions from electricity generation.

West Virginia was the second-biggest coal producer in the U.S. after Wyoming in 2016, accounting for 11 percent of the nation’s total output, according to the EIA. All of the state’s coal is bituminous with varying sulfur content, and about 75 percent is shipped out to other states and countries.

While Trump has since backed away from the economic truce reached between Beijing’s special envoy and the White House in Washington on May 19, U.S. Commerce Secretary Wilbur Ross plans to head back to Beijing early next month to continue talks. China has already said it will cut the import duty on passenger cars and there’s speculation more tariff reductions are on the way.

It wouldn’t be the first time that China’s trade policies affected Trump-supporting parts of the U.S. in particular. As the trade war ratcheted up earlier this year, China said it was considering harsher tariffs on soybeans, potentially harming the American farming industry that had backed the president, before walking back from the plan as the truce was reached.

Related News
  • The bunker for temporary storage of coal

    The bunker for temporary storage of coal

    November 23, 2017The ever growing demand for energy, and investments in new power plants which have been postponed over many years, have recently led to a remarkable boom in the construction of power plants. This requ...view
  • Bradwell Bmarks Chinese industry's transition

    Bradwell Bmarks Chinese industry's transition

    November 20, 2017Two decommissioned reactors are close to the premises where Bradwell nuclear power plant will be built.From 'big' to 'strong', the project sees China's technology embraced by world Development at the ...view
  • Space frame

    Space frame

    March 28, 2019In architecture and structural engineering, a space frame or space structure is a truss-like, lightweight rigid structure constructed from interlocking struts in a geometric pattern. Space frames can ...view
  • Reichstag Dome

    Reichstag Dome

    November 23, 2017The Reichstag dome is a large glass dome with a 360 degree view of the surrounding Berlin cityscape. The debating chamber of the Bundestag, the German parliament, can be seen down below. A mirrored co...view
  • Largest Building In The World

    Largest Building In The World

    August 24, 2018It is the largest man-made structure in the world and it is located in the Chinese Sichuan province, housing hotels, offices, a beach resort and an artificial sun. Capable of housing 20 Sydney Opera H...view
  • Curve Metal Roof

    Curve Metal Roof

    November 21, 2017While just about any material-stainless steel, galvanized or Galvalume steel, copper, zinc or aluminum-can all be used for curved metal panels, some materials are easier to bend than others. "Aluminum...view
  • TEL:+86 516 8595 0258
  • FAX:+86 516 8595 0278
  • Email:marketing01@cnxzlf.com
  • ADDRESS:222, Block B, Diamond International, Guozhuang Road, Xuzhou, Jiangsu, China

[QUERYS RESOURCE ID #57]

Total quantity:777, Total process time:0.23028183 ms

[FILES LOADED]

Total quantity:22

Use Memory: 11.6MB

Time-consuming: 0.40675 ms