Madrid: High-stakes trade negotiations between the United States and China are set to commence in Madrid this week, with U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent meeting with senior Chinese officials. The discussions come amid rising tensions over technology, tariffs, and ongoing concerns about economic security. Among the central topics is the looming September 17 deadline for TikTok to divest its U.S. operations, a demand from the U.S. government citing national security risks.
The talks follow a July meeting in Stockholm, where both nations agreed to a temporary 90-day trade truce. That agreement eased certain tariffs and allowed the resumption of rare-earth mineral exports from China to the United States, a critical supply for global technology manufacturing. Despite this truce, President Trump has extended existing U.S. tariffs on Chinese goods totaling roughly 55% through November 10, signaling that significant differences remain unresolved between the two economic powers.
TikTok, owned by China’s ByteDance, has emerged as a focal point of the negotiations. The U.S. government has demanded that the company divest its American operations by mid-September, citing concerns that user data could be accessed by the Chinese government. China, meanwhile, has urged Washington to approach the issue through dialogue and mutual respect, warning that unilateral measures could further strain relations between the world’s two largest economies.
In the run-up to the Madrid talks, Beijing has launched two trade investigations into U.S. practices. One probe targets potential discrimination against Chinese companies in the U.S. semiconductor trade, while the second examines alleged dumping of U.S.-produced analog chips used in products such as hearing aids and Wi-Fi routers. Analysts suggest these measures may be intended to leverage China’s position in ongoing negotiations, signaling that Beijing is prepared to assertively defend its economic interests.
Beyond the immediate issues of TikTok and chip trade, the Madrid talks carry broader geopolitical and economic significance. Observers note that the outcome could influence not only U.S.-China relations but also global supply chains, technology transfer policies, and the rules governing the digital economy. Both sides have expressed willingness to engage constructively, yet uncertainty remains, particularly given the interwoven challenges of tariffs, technology competition, and digital security.
As the September 17 deadline approaches, the world will closely watch whether the Madrid discussions can produce tangible agreements or whether tensions will escalate further. The negotiations underscore the delicate balancing act both nations face in managing economic rivalry, national security concerns, and the pressures of a highly interconnected global economy.