China has agreed to import at least 10 million tons of coal from the United States annually in 2027 and 2028, signaling continued efforts by the world’s two largest economies to ease trade tensions and improve bilateral economic ties.

According to the White House, the agreement will require China to import at least 10 million tons of US coal in each of the two years. The two countries will also pursue more favorable tariff treatment for US$30 billion (Rp532.59 trillion) worth of non-sensitive products from each country, according to Bloomberg.

The agreement was reached through the US-China Board of Trade. US products covered by the preferential tariff arrangement include agricultural goods, seafood, timber, cosmetics and medical devices.

Chinese consumer products covered by the agreement include small household appliances, toys, holiday decorations and child car seats.

The agreement follows a meeting between US President Donald Trump and Chinese President Xi Jinping in Washington this week, as the two sides seek to manage longstanding trade tensions.

Trade has remained a central issue in US-China relations, particularly after Trump raised tariffs on a range of Chinese products during his second term as president.

Coal has also become a priority for the Trump administration as Washington seeks to revive the US coal industry and strengthen coal’s role in the domestic energy mix.

Trump said in June that the US government would allocate hundreds of millions of dollars in taxpayer funds to support the coal industry.

The agreement with China comes as US energy prices rise, with electricity costs also facing upward pressure from surging demand from new factories and data centers supporting the development of artificial intelligence.

The White House said the US and China would also establish a working group to address market-access barriers in the agricultural sector, a longstanding issue in bilateral trade negotiations.

Washington and Beijing will further establish a Board of Investment to discuss investment opportunities and address investment-related barriers between the two countries.

The two sides also agreed to continue discussions over US concerns about supply shortages of rare earths and other critical minerals.

Trump urged Xi to increase refined petroleum production to help stabilize global energy supplies.

The two leaders also agreed to continue dialogue on emerging technologies, with the next discussion on artificial intelligence scheduled to take place no later than November.

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