U.S. and China Resume Trade Talks in Spain as Deadline for TikTok Looms

Madrid: U.S. and Chinese representatives met in Madrid on Sunday to de-escalate trade tensions, deal with an imminent U.S. divestment deadline for TikTok, and talk about Washington's pressure on allies to place tariffs on China for its purchases of Russian oil.

The sit-down was attended by U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer by China's Vice Premier He Lifeng and chief negotiator Li Chenggang in Spain's foreign ministry. It was the fourth round of talks in four months after previous sessions in Geneva, London, and Stockholm.

Even as hopes of a breakthrough are low, the most probable result is yet another extension of the September 17 deadline for ByteDance, the Chinese owner of TikTok, to divest its U.S. business or risk closure. A deal is not likely but political cover for a fourth extension is being established, sources said. Wider issues like limitations on Chinese buying of American farm products and fentanyl-related tariffs could be kept in reserve for a possible meeting between President Donald Trump and President Xi Jinping later this year.

The discussions also touched upon U.S. concerns regarding China's involvement in exporting technology products to Russia and attempts to pressure Beijing and India to reduce Russian oil imports. Washington has called on its G7 allies to join in placing tariffs on nations that continue importing Russian crude.

Spain, which hosted the negotiations, emphasized its increasing profile as a forum for high-level diplomatic meetings, despite navigating sensitive relations with both Washington and Beijing. The Madrid talks for the time being seem to have provided more time than tangible solutions on trade or security tensions.