US-China Talks on Trade and TikTok Continue for Second Day in Madrid

The delegations from the United States and China were set to continue their talks on Monday in Madrid, focusing on trade tensions and the looming deadline for China’s divestment from the short-video app TikTok.

The latest round of discussions—marking the fourth in four months—took place at the Baroque Palacio de Santa Cruz, which houses Spain’s Ministry of Foreign Affairs. The first day of talks on Sunday ended after nearly six hours without signs of significant progress.

A US government official stated that the discussions centered on TikTok, tariffs, and broader economic issues, but did not provide further details.

Led by US Treasury Secretary Scott Bessant and Chinese Vice Premier He Lifeng, the delegations have been meeting in European cities since May to resolve disagreements that triggered President Donald Trump’s increase in tariffs on Chinese imports, as well as retaliatory actions by China, including imposing similar duties on US goods and halting rare earth mineral exports to the US.

The delegations last met in Stockholm in July, where they agreed in principle to extend the trade truce for 90 days, resulting in significant tariff reductions and the resumption of rare earth exports from China to the US.

Experts expressed low expectations for a major breakthrough in Madrid, with the most likely outcome being an extension of the September 17 deadline for ByteDance, TikTok’s Chinese parent company, to divest its US operations—failing which a shutdown in the US could occur.

William Reinsch, a senior trade advisor at the Washington-based Center for Strategic and International Studies, remarked, “Until Trump and Xi Jinping meet face-to-face, I don’t expect substantive negotiations between the US and China. In fact, that’s the purpose of these talks.”

Though Trump has repeatedly expressed interest in meeting Xi Jinping, Reinsch noted that China is unlikely to agree until it sees tangible outcomes and secures further concessions, particularly on easing export controls related to semiconductors and other high-tech goods.

He added, “This meeting is more about assessing each other’s positions and understanding the limits both sides are willing to operate within.”

The Chinese Embassy in Madrid informed reporters on Monday afternoon about a possible closing press conference, suggesting that the talks may wrap up soon. In contrast, earlier discussions on more complex issues—such as rare earth supply negotiations in London—extended into a third day.

Ahead of Trump’s state visit with King Charles beginning Wednesday, Bessant was scheduled to meet with UK Finance Minister Rachel Reeves in London on Tuesday.