Energy will play a major role in a breakthrough in trade talks between the Trump administration and its Chinese counterparts, Treasury Secretary Steven Mnuchin told CNBC on Monday.
U.S. and Chinese trade negotiators agreed this weekend to put on hold tariffs that they have threatened against one another, after China agreed to purchase more American goods. The concession could move the needle on one of President Donald Trump's major goals: reducing the U.S. trade deficit with China.
To be sure, some economists have flagged challenges to increasing exports to China, from Beijing's ability to facilitate the imports to American farmers and manufacturers producing at or near full capacity.
However, oil and natural gas production is one area of the U.S. economy that is indeed booming. Meanwhile, China, the engine of the global economy, is hungry for more fossil fuels as more drivers take to the nation's roads and the government seeks to generate more electric power from cleaner-burning natural gas.