U.S. Treasury Secretary Scott Bessent said the United States and China are close to a deal that would settle their dispute over TikTok. The two sides resumed trade talks in Madrid, and Bessent described the negotiations as “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. They are expected to continue through Wednesday, the deadline for TikTok to find a buyer or face a ban in the United States.
Bessent emphasized that the outcome of the TikTok deal will not affect the overall relationship between the two countries, which he said remains “very good” at the highest levels. TikTok, owned by China‑based ByteDance, has been at the center of a U.S.‑China dispute over national‑security concerns. In June, President Donald Trump extended the deadline for TikTok to secure a non‑Chinese buyer or be banned in the United States; that extension expires on Wednesday, making the Madrid talks a crucial step toward a resolution.
The broader U.S.–China dialogue also addresses the trade war that has seen both sides impose tariffs on each other’s goods, as well as the U.S. threat of steep tariffs on Chinese imports. The trade truce has been uneasy, with Washington accusing Beijing of violating the agreement and of slow‑walking export‑license approvals for rare‑earth minerals—materials essential to the automotive, electronics, and defense industries, of which China is the world’s leading producer.
In parallel, China has launched investigations into the U.S. semiconductor sector, including an anti‑dumping probe of certain IC chips from the United States and an inquiry into whether the U.S. has discriminated against Chinese chip firms. China has also found that U.S. chip giant Nvidia violated its antitrust rules and has pledged an additional probe.
The ongoing talks are seen as a significant step toward easing trade tensions between the two nations, with potential repercussions for the global economy, especially in technology and trade sectors. As the TikTok deadline approaches, the world is watching the developments in Madrid closely, hoping a deal will be reached to resolve the dispute and reduce broader trade frictions.
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