U.S. and China Continue Madrid Trade Talks Amid TikTok Deadline

Delegations from the United States and China resumed negotiations in Madrid on Monday, extending discussions aimed at easing trade tensions and addressing the looming deadline for TikTok’s divestment. The talks, held at Spain’s historic Palacio de Santa Cruz, followed a six-hour session on Sunday with no clear signs of progress.

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng have led four rounds of talks since May across European cities. Their focus has included TikTok, tariffs, and broader economic issues that escalated after President Donald Trump increased tariffs on Chinese imports. China responded with heavy duties on U.S. goods and restrictions on rare earth exports, intensifying the standoff.

In July, meetings in Stockholm produced a temporary 90-day trade truce that reduced tariffs and restored rare-earth exports to the U.S. Analysts believe the most likely outcome in Madrid is another extension of the deadline for TikTok’s Chinese parent company, ByteDance, to sell its U.S. operations by September 17 or face a nationwide ban.

Experts remain cautious about a breakthrough. William Reinsch of the Center for Strategic and International Studies noted that progress depends on a potential meeting between Trump and Chinese President Xi Jinping. However, Beijing is unlikely to agree until Washington softens restrictions on semiconductor and technology exports. For now, the talks provide an opportunity for both sides to gauge each other’s red lines.

China’s embassy in Madrid signaled a possible press conference Monday afternoon, suggesting a swift conclusion. Meanwhile, Bessent is scheduled to meet British Finance Minister Rachel Reeves in London on Tuesday, ahead of Trump’s state visit with King Charles later in the week.

The outcome of these discussions could shape the trajectory of U.S.-China relations, global trade stability, and the future of TikTok’s U.S. presence.