The United States is “very close” to finalising an agreement with China to settle the ongoing dispute over TikTok, US Treasury Secretary Scott Bessent said on Monday, September 15, as trade talks resumed in Madrid.
Bessent and Chinese Vice Premier He Lifeng began a fresh round of negotiations on Sunday, focusing on trade and technology issues that have long strained ties between the world’s two biggest economies. The discussions are set to continue through Wednesday — the deadline for TikTok to secure a non-Chinese buyer or face a US ban.
“On the TikTok deal itself, we’re very close to resolving the issue,” Bessent told reporters as he arrived at Spain’s foreign ministry for a second day of meetings. He emphasised that even without a deal, “it doesn’t affect the overall relationship between the two countries. It’s still very good at the highest levels.”
TikTok, owned by China-based ByteDance, has been under US scrutiny for years over national security concerns. A federal law requiring its sale or ban was scheduled to take effect the day before Donald Trump’s inauguration on January 20. However, the Republican president — who relied heavily on social media during his 2024 campaign — paused the measure and later granted a 90-day extension in June. That grace period expires on Wednesday. Though Trump once backed a ban, he changed course after concluding the app helped him win over younger voters in the November election.
Beijing, meanwhile, urged Washington last week to handle disputes with “mutual respect and equal consultations,” calling for dialogue over confrontation.
The Madrid talks also cover Trump’s tariff threats against Chinese goods. Earlier this year, tit-for-tat duties escalated into triple digits, disrupting supply chains worldwide. Both sides later pulled back, with Washington imposing 30 percent tariffs on Chinese imports and Beijing setting 10 percent on US products. But that truce expires in November, and the US has accused China of deliberately slowing down export licences for rare earths — vital for industries from defence to electronics.
China, the world’s largest rare earth producer, has also taken action. On Saturday, Beijing launched two probes into the US semiconductor sector, including an anti-dumping investigation into American chips and a review of alleged discriminatory practices against Chinese firms. On Monday, authorities accused chipmaker Nvidia of violating antitrust laws and pledged further inquiry, adding fresh tension to the countries’ rivalry over semiconductor dominance.
These diplomatic and economic manoeuvres come amid speculation of a potential high-level meeting between Trump and Chinese President Xi Jinping. Senior defence and diplomatic officials from both nations held a series of phone calls last week, a move analysts say could pave the way for direct talks.
Trump has signalled he expects to visit China later this year or soon after, maintaining that despite friction over TikTok, tariffs and semiconductors, US-China economic relations remain on a positive path.
