U.S. and China Hold Trade Talks in Madrid

The United States and China wrapped up the first day of high-level trade talks in Madrid, as both sides attempt to manage one of the world’s most complex and fraught economic relationships. The meetings brought together senior U.S. officials, including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, and their Chinese counterparts, Vice Premier He Lifeng and veteran negotiator Li Chenggang. The talks are part of a broader effort to prevent tensions over tariffs, export controls, and technology from spiraling further.

One of the most pressing issues hanging over the negotiations is the fate of TikTok. Its parent company, ByteDance, is facing a September 17 deadline to sell off its U.S. operations or risk being banned outright. While such deadlines have been extended before, this is the first time TikTok’s future has been explicitly placed on the agenda during bilateral trade talks. Washington has long expressed concerns about data security and Beijing’s influence, while China sees the pressure as part of a wider attempt to limit its tech sector’s global reach.

The discussions in Madrid follow months of uneven progress. Earlier this year, talks in Stockholm produced a temporary 90-day trade truce and led to resumed shipments of rare earth minerals from China to the U.S., which was a small but symbolically important step. Still, fundamental disagreements remain. The United States is pressing China to restrict how its technology might be used to support Russia, especially through energy purchases, while Beijing is keen on easing U.S. tariffs and curbing the scope of export restrictions that have hurt its manufacturing sector.

Despite the high stakes, expectations for Madrid are modest. Analysts believe that a genuine breakthrough is unlikely without direct intervention from Presidents Donald Trump and Xi Jinping. For now, both sides seem focused on managing tensions rather than resolving them. The very fact that they continue to meet, this being the fourth round in as many months, is taken by observers as a sign that neither side wants the relationship to deteriorate further.

In the meantime, businesses and markets are watching closely. Any softening of tariffs or export restrictions would be welcomed by companies struggling with higher costs, while a forced sale or shutdown of TikTok could send shockwaves through the tech world. For now, Madrid offers more a stage for dialogue than for deal-making, but even dialogue may count as progress in a climate where mistrust runs deep.