U.S. and China Meet in Madrid: Trade Talks Amid Global Tensions

U.S. and Chinese officials launched a new round of negotiations in Madrid, Spain, on Sunday, focusing on sensitive issues in their strained trade relations. Key agenda items include the looming TikTok divestiture deadline and Washington’s pressure on allies to impose tariffs on Beijing over its purchases of Russian oil.

Fourth Round of Talks in Four Months

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer arrived at the Baroque Palacio de Santa Cruz—home of Spain’s foreign ministry—shortly before Chinese Vice Premier He Lifeng and chief trade negotiator Li Chenggang.

This marks the fourth meeting between both delegations in as many months, as Washington and Beijing attempt to prevent their trade relationship from collapsing under President Donald Trump’s tariff policies.

In July, the two sides agreed in Stockholm to extend a 90-day trade truce, easing triple-digit retaliatory tariffs and restoring the flow of rare-earth minerals from China to the U.S. Current U.S. tariff rates on Chinese goods, averaging about 55%, are set to remain in place until November 10.

TikTok at the Center of Dispute

Analysts say Madrid is unlikely to produce a breakthrough, but a likely outcome could be another extension of the deadline requiring ByteDance, TikTok’s parent company, to divest its U.S. operations. The current deadline, September 17, carries the risk of a U.S. ban if no deal is reached.

For the first time, TikTok has been formally listed as a discussion item in the U.S.-China trade talks, signaling the political weight of the issue. The move provides the Trump administration with cover for a likely extension, though it may frustrate lawmakers from both parties who had pushed for a U.S. takeover of TikTok to mitigate national security risks.

Wendy Cutler, former USTR negotiator and head of the Asia Society Policy Institute, noted that more substantial outcomes could be reserved for a possible meeting between Trump and President Xi Jinping later this year, potentially at the APEC summit in Seoul. Such outcomes could include a resolution on TikTok, easing restrictions on Chinese soybean imports, and lowering fentanyl-related tariffs.

However, Washington’s deeper concerns—such as urging China to pivot its economic model toward domestic consumption and reduce reliance on state-subsidized exports—may take years to resolve.

Pressure Over Russian Oil

The Treasury said the Madrid talks would also address joint efforts to combat money laundering, specifically targeting China’s alleged role in illicit technology transfers that support Russia’s war in Ukraine.

On Friday, Secretary Bessent urged G7 allies to impose “meaningful tariffs” on imports from China and India in response to their continued purchases of Russian oil, arguing that cutting Moscow’s revenues is key to bringing it to the peace table. While the U.S. has already added a 25% tariff on Indian goods, it has yet to apply similar penalties to Chinese imports.

Spain’s Role on the Diplomatic Stage

The choice of Madrid as the venue underscores Spain’s growing ambition as a hub for high-level international negotiations. For Spain, it also provides a chance to reinforce bilateral ties with Washington following recent tensions with the Trump administration, particularly over defense spending and Middle East policy.