MADRID: The United States and China are nearing an agreement regarding the short-video application TikTok according to US Treasury Secretary Scott Bessent.
Bessent confirmed the progress during the second day of trade discussions in Madrid aimed at resolving ongoing tensions between the two economic superpowers.
He emphasised that failure to reach a deal on Chinese divestment from TikTok would not damage bilateral relations between the nations.
“It’s still very good at the highest levels,” Bessent told reporters alongside US Trade Representative Jamieson Greer.
The current negotiations represent the fourth round of talks held in European cities over the past four months.
Discussions are taking place at the baroque Palacio de Santa Cruz which houses Spain’s foreign ministry.
The first day concluded on Sunday after approximately six hours without any indication of a major breakthrough.
Bessent acknowledged that both sides had made good progress on technical details during the discussions.
He noted that reaching agreements on other issues would prove challenging given the current negotiating positions.
“Our Chinese counterparts have come with a very aggressive ask,” he added.
The Treasury Secretary firmly stated that national security concerns would not be sacrificed for any social media application.
A US government official confirmed that talks had centered on TikTok alongside broader tariff and economic matters.
Bessent indicated that extending the TikTok divestment deadline would depend largely on Monday’s negotiation outcomes.
Greer explained that the TikTok issue could hinge on reaching parallel agreements regarding other trade measures.
“From the Chinese perspective, they view as part and parcel of the potential TikTok deal a variety of matters,” Greer stated.
He clarified that the United States could not simply eliminate every trade measure it had implemented over recent years.
Delegations led by Bessent and Chinese Vice Premier He Lifeng have been meeting since May to resolve differences.
These tensions prompted former President Donald Trump to raise tariffs on Chinese imports significantly.
China responded with similar high import duties on US goods and temporarily halted rare earth exports.
The delegations last met in Stockholm during July where they agreed to extend a trade truce for 90 days.
That agreement sharply reduced triple-digit retaliatory tariffs and restarted rare-earth exports to the United States.
Experts maintained low expectations for any significant breakthrough emerging from the Madrid discussions.
The most probable outcome appeared to be another deadline extension for TikTok’s Chinese owner ByteDance.
ByteDance faces a September 17 deadline to divest US operations or risk a complete shutdown.
William Reinsch from the Center for Strategic and International Studies expressed skepticism about substantive agreements.
“I’m not expecting anything substantive between the United States and China unless there is a one-on-one meeting between Trump and Xi,” Reinsch said.
He suggested that setting up such a high-level meeting represented the primary objective of these negotiations.
Trump has repeatedly expressed interest in meeting with Chinese President Xi Jinping recently.
Reinsch noted that China would likely require further easing of US export controls before agreeing to any summit.
China’s embassy in Madrid notified reporters about a potential concluding news conference on Monday afternoon.
Some previous discussions over more complex issues extended to a third day according to historical patterns.
Bessent is scheduled to travel to London on Tuesday to meet British Finance Minister Rachel Reeves.
That meeting will precede former President Trump’s state visit with King Charles beginning on Wednesday. – Reuters
