In a significant development for global technology and trade, the United States and China are reportedly nearing a resolution regarding the popular short-video application, TikTok. US Treasury Secretary Scott Bessent announced this progress as a new round of crucial talks unfolded in Madrid, aimed at easing ongoing trade tensions between the two world powers.
Bessent emphasized that even if an agreement concerning TikTok’s Chinese ownership (divestment) wasn’t finalized, it wouldn’t sour the broader relationship between the nations. He conveyed a sense of mutual respect, telling reporters, “It’s still very good at the highest levels,” while alongside US Trade Representative Jamieson Greer.
This latest series of negotiations, the fourth in just four months, commenced its second day in the historic Palacio de Santa Cruz, home to Spain’s foreign ministry. The initial six-hour session on Sunday concluded without any public indication of a major breakthrough.
While acknowledging positive headway on technical aspects, Bessent noted that reaching consensus on other complex issues remained challenging. He stated, “Our Chinese counterparts have come with a very aggressive ask,” underscoring the tough bargaining. “We are not willing to sacrifice national security for a social media app,” he firmly added, highlighting the US priorities.
According to a US government official who refrained from elaborating, the discussions primarily revolved around TikTok, existing trade tariffs, and the broader economic landscape.
The extension of TikTok’s divestment deadline, a critical point, largely depended on the outcome of Monday’s discussions, Bessent explained. Greer further clarified that while the TikTok issue had seen some resolution, it was still intricately tied to broader agreements. He remarked, “From the Chinese perspective, they view as part and parcel of the potential TikTok deal a variety of matters, whether it’s tariffs or other measures that have been taken over years.” However, Greer cautioned that the United States could not simply roll back every measure taken to address these issues. “We still have to grind through negotiations and discussions of the common understanding, and I don’t think this is the moment to just pull all those things,” he asserted.
These high-level delegations, led by Bessent and Chinese Vice Premier He Lifeng, have been meeting in various European cities since May. Their objective is to iron out differences that led to President Donald Trump imposing tariffs on Chinese imports, triggering reciprocal measures from China, including high import duties on US goods and a disruption in rare earths supply to the United States. Their last encounter in Stockholm in July resulted in a 90-day extension of a trade truce, which significantly lowered retaliatory tariffs and resumed rare-earth exports from China to the US.
Experts held tempered expectations for a major breakthrough in the Madrid talks. Many anticipated another extension of the deadline for TikTok’s Chinese parent company, ByteDance, to sell its US operations, currently set for September 17, failing which it faces a shutdown in the US. William Reinsch, a senior trade adviser at the Center for Strategic and International Studies, commented, “I’m not expecting anything substantive between the United States and China unless and until there is a one-on-one meeting between Trump and Xi.” He suggested that the current talks are essentially laying the groundwork for such a high-stakes presidential meeting.
Reinsch also noted President Trump’s repeated interest in meeting with President Xi. However, he indicated that China would likely hold off on agreeing to such a summit until the outcomes were clearer and they had secured further easing of US export controls, particularly on critical components like chips and other high-tech products. “This meeting is an opportunity to measure each other’s positions and to learn more about each side’s red lines,” Reinsch concluded, highlighting the exploratory nature of these discussions.
The Chinese embassy in Madrid informed reporters of a potential concluding news conference on Monday afternoon, hinting at a swift wrap-up of the talks. Historically, more complex negotiations, such as those concerning rare earths shipments in London, have sometimes extended into a third day.
Following the Madrid discussions, Secretary Bessent was scheduled to travel to London on Tuesday for a meeting with British Finance Minister Rachel Reeves, ahead of President Trump’s state visit with King Charles, which is slated to begin on Wednesday.