US ‘Very Close’ to TikTok Deal with China as Trade Talks Resume in Madrid

ERBIL (Kurdistan24) — China and the United States resumed high-stakes trade talks on Monday in Madrid, aiming to bridge differences over technology, tariffs, and other economic disputes that have strained relations between the world’s two largest economies.

Delegations led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng opened the latest round of discussions at Spain’s foreign ministry, with meetings expected to continue through Wednesday. Officials from both nations were seen entering the ministry on Monday morning, AFP reported.

Among the most pressing issues on the agenda is President Donald Trump’s threat of steep tariffs on Chinese imports, alongside Washington’s demand that TikTok be sold to a non-Chinese owner or face a US ban by September 17.

Treasury officials indicated that the United States is “very close” to reaching a deal on the popular video-sharing app, a move that could remove a major source of friction in bilateral relations.

Trade tensions between the two powers escalated sharply earlier this year, with tit-for-tat tariffs reaching triple digits and disrupting global supply chains.

Both governments later agreed to roll back duties to 30 percent on US goods and 10 percent on Chinese exports, though the temporary truce is set to expire in November.

Despite the Madrid talks, frictions remain high. Last week, Beijing urged Washington to resolve disputes “based on mutual respect and equal consultations,” while over the weekend, China launched investigations into the US semiconductor sector.

The United States has long expressed concerns about China’s technology policies, including intellectual property practices and forced technology transfers, which Washington argues put American firms at a disadvantage.

The TikTok issue has become particularly sensitive, with US officials citing national security risks from Chinese ownership of the popular social media platform, which has millions of American users.

For China, the talks represent an opportunity to ease pressure from US tariffs while maintaining control over its tech sector. Any agreement on TikTok and broader trade issues could signal a temporary thaw in US-China relations, which have been marked by growing economic competition, geopolitical tensions, and disagreements over supply chains and rare earth minerals crucial to modern technology.

Experts say these meetings could lay the groundwork for a possible summit between Trump and Chinese leader Xi Jinping later this year. Until then, negotiators will face the challenge of stabilizing an uneasy truce while addressing disputes over access to technology, tariffs, and rare earth exports.