U.S.-China Negotiations On TikTok Divestment Intensify In Madrid Amid Trade Discussion

News In Short:

The U.S. and China are nearing a TikTok deal in Madrid, but Chinese trade demands may complicate progress, said U.S. Treasury Secretary Scott Bessent. Talks focus on ByteDance divesting TikTok’s U.S. operations amid broader trade discussions. A potential ban looms unless ownership changes. The September 17 deadline may be extended, with low expectations for a major breakthrough.

News In Detail: TikTok

U.S. Treasury Secretary Scott Bessent announced on Monday that the United States and China are nearing an agreement regarding the social media platform TikTok, though Chinese demands for trade concessions could complicate the deal. The statement came as negotiators prepared for a second day of discussions in Madrid.

The talks, involving U.S. and Chinese delegations, focus on ByteDance, TikTok’s Chinese owner, divesting its U.S. operations. These discussions are part of broader negotiations addressing tariffs and economic policies. “The Chinese side has presented a bold set of demands,” Bessent told reporters alongside U.S. Trade Representative Jamieson Greer.

“We’re working to find common ground, but national security remains our priority over any social media platform,” Bessent emphasized.

The negotiations, led by Chinese Vice Premier He Lifeng, began on Sunday at Madrid’s historic Palacio de Santa Cruz, the seat of Spain’s foreign ministry. The talks address strained U.S.-China trade relations and a looming deadline for TikTok’s divestment. The U.S. has warned that TikTok could face a ban unless it transitions to American ownership. Analysts predict the Madrid talks may result in extending the September 17 deadline for ByteDance to sell its U.S. operations, avoiding a potential shutdown.

This marks the fourth round of U.S.-China talks in as many months. Bessent noted progress on technical details but acknowledged that broader issues pose challenges. The outcome of Monday’s discussions will likely determine whether the TikTok divestment deadline is extended.

Greer explained that China views the TikTok deal as tied to other trade matters, such as tariffs and past U.S. measures. However, he stressed that the U.S. cannot simply undo all previous actions to resolve the issue. “We’re still working through detailed negotiations to reach a mutual understanding,” Greer said.

In Beijing, Chinese Foreign Ministry spokesperson Lin Jian declined to provide updates, stating that China’s position on TikTok remains unchanged.

Expectations for a major breakthrough in Madrid are low. William Reinsch, a trade expert at the Center for Strategic and International Studies, suggested that significant progress might require a direct meeting between U.S. President Donald Trump and Chinese President Xi Jinping. “These talks are more about laying the groundwork for a potential Trump-Xi summit,” Reinsch said. He noted that China is unlikely to agree to such a meeting until they have clarity on U.S. positions, particularly regarding export controls on advanced technology like chips.

The Madrid talks follow a July meeting in Stockholm, where both sides agreed to a 90-day trade truce. This reduced high retaliatory tariffs and resumed China’s rare-earth exports to the U.S. The ongoing discussions stem from earlier tensions, including U.S. tariff increases under President Trump and China’s retaliatory duties on American goods.

China’s embassy in Madrid hinted at a possible concluding press conference on Monday, suggesting the talks may end soon. Bessent is scheduled to travel to London on Tuesday to meet British Finance Minister Rachel Reeves before Trump’s state visit to the UK begins on Wednesday.

Bessent downplayed the impact of a potential failure to reach a TikTok deal, stating that high-level relations remain strong. “Ambassador Greer and I have great respect for our Chinese counterparts,” he said.

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