As the US Revives Coal for AI Power, China Finds New Value in Turning It Into Fashion
As the United States looks to revive coal as a source of energy for its growing artificial intelligence ambitions, China is taking a very different path by transforming the fossil fuel into high value materials used in everyday consumer products. The contrast highlights how the two countries are approaching industrial strategy in the age of advanced manufacturing and energy transition.
US President Donald Trump has pushed to bring coal back to the centre of America’s energy mix, arguing that it can help meet rising electricity demand driven by domestic manufacturing and the rapid expansion of AI data centres. In an executive order signed on April 8, Trump said America’s coal resources would be critical for powering energy intensive industries and maintaining competitiveness in the global technology race, particularly against China.
The move includes efforts to expand coal mining and support coal fired power plants, despite long standing concerns over pollution, carbon emissions and environmental impact. Supporters say coal offers reliable base load power, while critics argue it runs counter to climate goals and delays investment in cleaner energy systems.
China, meanwhile, is showing how coal can be used in a radically different way. In Pingdingshan, a former coal mining hub in central Henan, the black rock is no longer just something to burn. Instead, it is being chemically processed into nylon, one of the world’s most widely used synthetic materials.
Once associated with industrial decline, Pingdingshan has repositioned itself as part of China’s advanced materials supply chain. Coal derived chemicals are now feeding production lines that make nylon for clothing and industrial use. The material is essential for sportswear, lingerie and outdoor apparel, prized for its strength, elasticity and durability.
Beyond fashion, nylon produced from coal plays a key role in higher value sectors such as aerospace, defence, automotive manufacturing and electronics. These applications offer far greater economic returns than using coal simply as fuel, and they align with China’s broader push to move up the global manufacturing value chain.
Industry analysts say this shift reflects a strategic divergence. While the US is treating coal primarily as an energy source to power new technologies, China is reframing it as a raw material for advanced manufacturing. By extracting more value from each tonne of coal, Chinese firms are reducing reliance on burning it while creating products that serve both domestic and global markets.
The approach also fits into China’s long term industrial planning, which emphasises materials science, supply chain resilience and export oriented manufacturing. Even as China expands renewable energy, it is finding ways to repurpose traditional resources rather than abandon them outright.
The contrast underscores a broader reality. In the race to dominate future industries, how countries use their resources may matter as much as how much energy they generate.
