US-China Talks Focus on TikTok, Tariffs, and Russian Oil

US and Chinese officials concluded a day of talks in Madrid on Sunday to address strained trade relations. The discussions, held at Spain’s Palacio de Santa Cruz, lasted six hours. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer led the American delegation. They met with Chinese Vice Premier He Lifeng and trade negotiator Li Chenggang to explore potential solutions. These talks mark the fourth meeting in four months to address ongoing trade tensions.

The most pressing issue in the talks is the popular short-video app, TikTok. The app’s Chinese owner, ByteDance, faces a September 17 deadline to divest its US operations or face a possible shutdown. Trade experts predict that the Madrid discussions will likely result in another extension of this deadline. This would be the fourth such delay since President Trump took office. Despite the urgency surrounding TikTok, analysts believe the talks are unlikely to yield major breakthroughs.

Another critical issue discussed was the US’s demands on China’s purchases of Russian oil. US officials, including Bessent, have urged G7 allies to impose tariffs on countries, like China and India, buying Russian oil. The goal is to pressure Russia to negotiate peace over its invasion of Ukraine. However, the US has not yet imposed tariffs on Chinese imports for buying Russian oil, though they have targeted India. China’s Ministry of Commerce confirmed that the talks would address tariffs and export controls, including on TikTok.

Experts suggest that no significant agreements will be reached until US President Donald Trump and Chinese President Xi Jinping meet directly. This potential meeting, expected later in the year, could lead to more substantial concessions. Former trade negotiator Wendy Cutler emphasized that China is likely to push for the removal of US export controls and reduced tariffs on key goods like soybeans. The focus for now is on setting up future discussions, with little expectation of immediate results.

The Madrid talks also covered broader economic issues, including money laundering and the illicit shipment of technology goods to Russia. Bessent reiterated the US’s stance on using tariffs to influence China and India’s stance on Russian oil. As the trade tensions continue, all eyes are on the upcoming Trump-Xi meeting, where a more comprehensive resolution could be reached. The Madrid talks are scheduled to resume Monday morning, with press conferences expected in the afternoon.