The United States is “very close” to finalizing a deal with China regarding TikTok, according to US Treasury Secretary Scott Bessent. This announcement came as trade discussions resumed in Madrid on Monday.
Bessent and Chinese Vice Premier He Lifeng initiated the latest round of talks on Sunday, aiming to address trade and technology differences that have strained relations between the two largest economies in the world. The discussions are set to continue until Wednesday, which is the deadline for TikTok to secure a buyer or face a ban.
“On the TikTok deal itself, we’re very close to resolving the issue,” Bessent stated as he arrived at Spain’s foreign ministry for the second day of negotiations. He emphasized that a failure to reach an agreement on TikTok would not impact the overall relationship between the United States and China, which remains strong at the highest levels.
TikTok is owned by the China-based internet company ByteDance. A federal law mandating TikTok’s sale or a ban on national security grounds was scheduled to take effect just before President Donald Trump’s inauguration on January 20. However, Trump, who has relied heavily on social media for his 2024 election campaign and expressed fondness for TikTok, paused the ban.
In mid-June, Trump extended the deadline for TikTok to find a non-Chinese buyer by another 90 days, which is set to expire on Wednesday. Despite his previous support for a ban or divestment, Trump reversed his stance, believing the platform helped him gain support from young voters in the November election.
Beijing’s commerce ministry urged Washington on Friday to engage in dialogue based on mutual respect to resolve concerns regarding TikTok.
The Madrid talks also address Trump’s threat of imposing steep tariffs on Chinese imports. Trade tensions have escalated sharply this year, with retaliatory tariffs reaching triple digits and disrupting supply chains. Both governments later agreed to reduce punitive tariffs, with the US imposing 30% duties on Chinese goods and China responding with a 10% levy. However, this temporary truce is set to expire in November.
The US-China trade relationship has been fragile, with Washington accusing Beijing of violating agreements and delaying export license approvals for rare earths, critical materials used in various industries.
In related news, China has launched investigations into the US semiconductor sector, including an anti-dumping probe into certain IC chips from the United States. Additionally, an investigation into US chip giant Nvidia has found it in violation of China’s antitrust laws, with further inquiries underway.
Top diplomats and defense officials from both nations engaged in back-to-back phone calls last week, potentially paving the way for a meeting between Trump and Chinese leader Xi Jinping. Trump has indicated plans to visit China this year or soon after, highlighting improved economic ties between the two countries.
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