The United States and China are nearing a deal to resolve their dispute over TikTok, according to US Treasury Secretary Scott Bessent. The two sides resumed trade talks in Madrid, with Bessent stating that they are “very close” to resolving the issue. The talks, which began on Sunday, aim to narrow differences on trade and technology that have strained relations between the two nations.
The discussions are expected to continue through Wednesday, which is the deadline for TikTok to find a buyer or face a ban in the US. Bessent emphasized that the outcome of the TikTok deal will not affect the overall relationship between the two countries, which remains “very good” at the highest levels. TikTok, owned by China-based internet company ByteDance, has been at the center of a dispute between the US and China due to national security concerns.
In June, US President Donald Trump extended a deadline for TikTok to find a non-Chinese buyer or be banned in the US. The extension is due to expire on Wednesday, and the talks in Madrid are seen as a crucial step in resolving the issue. The US and China have been engaged in a trade war, with both sides imposing tariffs on each other’s goods. The talks in Madrid also cover the US threat of steep tariffs on Chinese imports.
The US-China trade truce has been uneasy, with Washington accusing Beijing of violating their agreement and slow-walking export license approvals for rare earths. China is the world’s leading producer of rare earths, which are essential to the automotive, electronics, and defense industries. The trade tensions between the two nations have been escalating, with both sides imposing punitive tariffs on each other’s goods.
In a related development, China has launched investigations into the US semiconductor sector, including an anti-dumping probe into some IC chips originating from the US. China has also announced an investigation into whether the US has discriminated against the Chinese chip sector. Additionally, China has found that US chip giant Nvidia has violated the country’s antitrust rules, and has vowed to launch an additional probe.
The ongoing talks between the US and China are seen as a significant step towards resolving the trade tensions between the two nations. The outcome of the talks is expected to have a significant impact on the global economy, particularly in the technology and trade sectors. As the deadline for TikTok’s fate approaches, the world is watching the developments in Madrid closely, with hopes that a deal will be reached to resolve the dispute and ease trade tensions between the two nations.