President Trump teases Alaska oil and gas deal as China agrees to U.S. energy purchases

U.S. President Donald Trump has announced that China is increasing its energy purchases from the U.S., highlighting a major oil and gas deal in Alaska. Trump withheld further details but mentioned that U.S. officials, led by Energy Secretary Chris Wright and Interior Secretary Doug Burgum, will meet with their Chinese counterparts to discuss the specifics. 

Trump explained that China’s pledge to buy more U.S. energy is part of a broader trade truce. His comments suggest that Washington will spend more time courting China for the long-stalled $44 billion Alaska LNG project, which the president has championed. The project has reportedly struggled for decades to secure the binding long-term investments and contracts needed for its growth. 

Several Chinese oil companies, including state-owned Sinopec, signed agreements with Alaska for gas exports in 2017; however, no materialization has occurred to date. However, buyers in Taiwan and Japan have already signed preliminary deals with the project.   

Cryptopolitan reported that several state-owned oil companies in China ceased purchasing Russian crude oil after the sanctions on Russia took effect. China must weigh the importance of protecting its oil companies against its relationship with Russia, yet its companies reportedly worry less about U.S. blacklisting.

However, companies that fail to comply with the November 21 deadline risk severe financial consequences. The sanctions could compromise their ability to obtain loans from U.S. banks if they continue to purchase energy products directly from Russia. 

Trump and Xi agree to extend trade truce

Trump and Chinese President Xi Jinping have reportedly agreed to extend the trade truce by at least one year. The duo also agreed to roll back controls on exports and reduce other trade barriers, potentially stabilizing a bilateral relationship that has been in turmoil for months. 

In the first meeting between the leaders since Trump returned to Washington for his second term, the two agreed that China will pause its sweeping controls on rare-earth magnets. In exchange, Beijing said the U.S. would roll back the expansion of restrictions on Chinese companies. 

“China has agreed to continue the flow of Rare Earth, Critical Minerals, Magnets, etc., openly and freely.” 

–Donald Trump, President of the United States 

Trump said he has agreed to trim tariffs on China in exchange for Beijing resuming the purchase of U.S. soybeans and cracking down on illegal fentanyl trade. He also touted trade breakthroughs with Japan, South Korea, and other nations in Southeast Asia. 

Trump praises meeting with Xi 

Trump emphasized that his meeting with Xi was great, ranking it 12 out of 10. He added that tariffs on Chinese imports would be dropped from 57% to 47%, by halving the rate of tariffs on fentanyl precursor drugs to 10%. 

POTUS also said Xi will put extra effort into stopping the fentanyl flow, which has caused many American overdose deaths. Meanwhile, Xi stated that both sides agreed to resolve the TikTok issues and expand agricultural trade. Trump has expressed his desire to have the short video platform under U.S.-controlled ownership.

However, Besa Deda, the chief economist at Willian Buck, said the response from markets has been cautious in contrast to Trump’s enthusiastic characterization of the meeting. China’s Shanghai Composite Index fell from a 10-year high, while U.S. soybean futures remained weaker.  

Meanwhile, Trump emphasized that the best is yet to come, adding that American farmers would be pleased with the agricultural deals made, urging them to expand their operations by purchasing more land and larger tractors. Xi added that China’s rejuvenation and development plans are not incompatible with Trump’s ambition of making America great again. 

The two leaders also agreed to pause the tit-for-tat port fees on shipping, with the White House signaling that this will be the first of many deals between the leaders in the coming year. Chinese state media has also portrayed the meeting as a win for Xi’s policymaking. 

Join Bybit now and claim a $50 bonus in minutes