The United States is very close to reaching an agreement with China to resolve the 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 new round of discussions on Sunday, aimed at narrowing differences on trade and technology that have weighed heavily on relations between the two largest economies. The negotiations are scheduled to run through Wednesday, the deadline for TikTok to find a non-Chinese buyer or face a US ban. On the TikTok deal itself, were very close to resolving the issue, Bessent told reporters on arrival at Spains foreign ministry for a second day of talks. He stressed that even without a settlement, it doesnt affect the overall relationship between the two countries. Its still very good at the highest levels. TikTok, owned by China-based ByteDance, has faced US scrutiny for years over national security concerns. A federal law requiring its sale or ban was due to take effect the day before Donald Trumps inauguration on January 20. However, the Republican president whose 2024 campaign leaned heavily on social media paused the measure, later extending TikToks deadline by 90 days in June. That extension expires Wednesday. Although Trump initially supported a ban, he reversed course after concluding that TikTok played a role in helping him win young voters in the November election. Beijing, for its part, urged Washington last week to engage on the basis of mutual respect and equal consultations to resolve disputes, calling for dialogue rather than confrontation. The Madrid talks also address Trumps threats of new tariffs on Chinese goods. Earlier this year, tit-for-tat duties surged into triple digits, disrupting global supply chains. Both governments later scaled back, with the US imposing 30 percent tariffs on Chinese imports and Beijing levying 10 percent on US products. But the truce is set to expire in November, and Washington has accused Beijing of slow-walking export license approvals for rare earths, critical to industries ranging from defence to electronics. China, the worlds top rare earth producer, has responded with moves of its own. On Saturday, Beijing announced two investigations into the US semiconductor industry, including an anti-dumping probe into American IC chips and a review of alleged discriminatory practices against Chinese firms. On Monday, Chinese authorities said chip giant Nvidia had breached the countrys antitrust laws and vowed further inquiry, without giving details. The probe adds another flashpoint to the already tense US-China competition for dominance in semiconductors. The flurry of diplomatic and economic exchanges comes amid signals of a possible high-level meeting between Trump and Chinese President Xi Jinping. Top defence officials and diplomats from both sides held back-to-back phone calls last week, which analysts say could pave the way for direct talks. Trump has said he expects to visit China later this year or soon afterwards, insisting that despite disputes over TikTok, tariffs and semiconductors, economic relations between Washington and Beijing are on an upward trajectory.
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