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
  • Beijing digs new depth in Olympic legacy

    Beijing digs new depth in Olympic legacy

    November 20, 2017BEIJING - The newly updated corridor on the glass roof of Beijing's iconic "Bird's Nest" has been open to the public which enables tourists to overlook the Chinese capital on the highest point of the ...view
  • Beijing City Sub-center Security Guards Joint Service Center South Building successfully closed

    Beijing City Sub-center Security Guards Joint Service Center South Building successfully closed

    January 30, 2019At 10:18 am on December 24, 2018, the main structure of the South Building of the Beijing City Sub-center Security Guard Center was capped. Mr. Huang, the owner, Director Deng, and Xiong Jie, deputy g...view
  • Pre-Engineered Steel Structure

    Pre-Engineered Steel Structure

    November 21, 2017WATERTOWN, N.Y. — Washington Summit, the 52-acre campus, Outer Washington Street, Watertown, that houses premiere Medical and Professional Practices, is expanding again with the addition of a new m...view
  • Official Opening Of The Gwadar Port In Pakistan

    Official Opening Of The Gwadar Port In Pakistan

    November 21, 2017Pakistani Prime Minister Nawaz Sharif has traveled to the country's southwest to mark the launch of trade activity from the Gwadar port on the Arabian Sea.The first convoy of Chinese trucks carrying g...view
  • Steel-Supported Glazed Facades And Roofs

    Steel-Supported Glazed Facades And Roofs

    November 23, 2017Steel is the most suitable material to use to support facades in circumstances where glazing has to be supported over distances of more than about four meters. The strength and stiffness of steel is s...view
  • Powering Toward A Clean Energy Future

    Powering Toward A Clean Energy Future

    November 21, 2017A wind farm in Zhoushan, Zhejiang province. China's investment in clean energy in 2014 hit a record $89.5 billion, accounting for 29 percent of the world's total. Editor's note: The Communist Party of...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


Total quantity:801, Total process time:0.21821332 ms


Total quantity:22

Use Memory: 11.6MB

Time-consuming: 0.37011 ms