Trump Announces China Energy Purchase Plans Amid Trade Talks

President Donald Trump announced that China has agreed to begin purchasing U.S. energy products, including a potential large-scale deal involving oil and natural gas from Alaska. Discussions to finalize the deal will be led by U.S. Energy Secretary Chris Wright and Interior Secretary Doug Burgum. This move is part of a broader trade truce between the U.S. and China, which also includes agreements on rare earth element supplies critical for various industries. Despite this announcement, substantial geopolitical risks and tariff-related uncertainties continue to cloud the outlook for large-scale U.S. energy exports to China, as Chinese imports of U.S. oil and gas have significantly declined in 2025. The trade truce also extends export controls rollbacks and aims to stabilize the bilateral relationship, with Trump and Chinese leader Xi Jinping agreeing to at least a one-year extension of the agreement. China previously reduced imports of U.S. crude oil and liquefied natural gas due to high tariffs, representing a small share of China’s total energy imports last year.