TikTok divestiture, tariffs, and tensions: Why U.S. and China are talking in Madrid
Top U.S. and Chinese officials convened in Madrid on Sunday for their latest attempt to manage one of the world’s most fractious trade relationships.
The meeting, held at the Palacio de Santa Cruz, Spain’s foreign ministry, marks the fourth round of negotiations in four months, with delegations shuttling between European capitals to keep talks alive despite rising tensions.
The U.S. side was led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, while China was represented by Vice Premier He Lifeng and Chief Trade Negotiator Li Chenggang.
TikTok on the agenda
Nikkei Asia reports that for the first time, TikTok has been formally placed on the talks’ agenda. The popular short-video app’s Chinese parent company, ByteDance, faces a looming September 17 deadline to divest its U.S. operations or risk being shut down.
While sources close to the Trump administration caution that no deal is expected in Madrid, officials anticipate the deadline will be extended yet again, the fourth such extension since President Donald Trump took office in January.
The public inclusion of TikTok in the Madrid discussions is seen as giving the administration political cover for another delay, even as lawmakers from both parties press for a permanent solution.
Tariffs and trade tension
Meanwhile, trade tensions remain at the heart of the talks. Trump has approved the extension of tariffs on Chinese goods at rates of about 55 percent until November 10, continuing a policy that has fueled a cycle of retaliation between the two powers.
At the same time, Washington is pressing allies to impose tariffs on China for its purchases of Russian oil, a demand that underscores how trade disputes are increasingly intertwined with geopolitical flashpoints.
China, on the other hand, has sought relief from U.S. export controls and a reduction of tariffs it views as crippling to its state-subsidised industries.
Projected outcome of Madrid talks
According to Wendy Cutler, a former U.S. trade negotiator, the Madrid discussions may help pave the way for “deliverables” at a high-level meeting, potentially including agreements on soybeans, fentanyl tariffs, and a final resolution on TikTok.
“Frankly, I don’t think China is in any rush to do an agreement where they don’t get substantial concessions on export controls and lower tariffs,” Cutler said. “And I don’t see the United States in a position to make major concessions on either.”
The U.S.-China trade relationship has, in recent months, been battered by tariffs, retaliatory decisions and mutual suspicion.
This story is written and edited by the Global South World team, you can contact us here.
