U.S. and China resume Madrid trade talks as TikTok deadline looms
U.S. and Chinese trade representatives convened for a second day of talks in Spain, focusing on critical issues such as tariff rates, export controls, and the impending deadline for the divestment of Chinese-owned social media platform TikTok. The discussions, led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer for the U.S., and Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang for China, centered on TikTok, tariffs, and economic concerns.
This round of negotiations in Madrid marks the fourth bilateral meeting in four months following an agreement in May to halt most tariffs and ease mutual restrictions. A recent visit to Washington by Chinese senior trade negotiator Li Chenggang did not yield significant progress, making these talks crucial for both parties.
On the second day of discussions, Bessent reported positive advancements in technical details, indicating that an agreement on TikTok is within reach. However, he emphasized that national security will not be compromised for the sake of a social media app, reflecting the ongoing tensions between the two economic powerhouses.
In a tit-for-tat exchange, China initiated investigations targeting the U.S. semiconductor industry over the weekend, responding to the U.S. addition of 23 Chinese companies to its entity list. These actions further escalate the trade dispute, with China also scrutinizing U.S. chip giant Nvidia for potential anti-competition violations.
Wendy Cutler, a former U.S. trade representative, expressed skepticism about the prospects of improving the bilateral economic relationship given the current standoff. She highlighted Beijing’s strategic maneuvers to secure concessions from Washington, signaling a challenging path forward for trade negotiations.
The deadline for ByteDance, the parent company of TikTok, to secure a deal to continue operating in the U.S. looms large, with Trump indicating that the app’s fate hinges on Beijing’s actions. As both sides navigate the complexities of tech transfer and export controls, the outcome of these discussions will have far-reaching implications for the tech industry and bilateral trade relations.
Amidst these negotiations, the possibility of a meeting between President Trump and Chinese President Xi Jinping later this year is also under consideration. Reports suggest that Beijing has been actively seeking to facilitate a state visit by Trump to China, potentially setting the stage for further high-stakes discussions on trade and diplomatic relations.
