US-China talks open, expected to extend TikTok deadline amid pressure over Russian oil
US-China talks in Madrid ended on the first day without any significant progress, with analysts predicting the most likely outcome is another extension of the deadline for ByteDance to sell TikTok's US operations.
September 15, 2568, 05.51:XNUMX a.m. Reuters reported that U.S. and Chinese officials concluded the first day of talks in Madrid on Sunday on trade tensions, a looming deadline to sell China's short-video app TikTok, amid pressure from Washington for allies to impose additional tariffs on Chinese imports due to their purchases of Russian oil.
U.S. Treasury Secretary Scott Basen told reporters as he left the White House, "We'll be starting again in the morning."
The talks between a delegation led by US Trade Representative (USTR) Bessant and Jamison Greer, Chinese Vice Premier He Lifeng and China's chief trade negotiator Li Chenggang, took place at the Palacio de Santa Cruz, home to the Spanish Foreign Ministry, and concluded after about six hours of discussions.
This marks the fourth time in four months that delegations from both sides have met in a major European city in an effort to save fragile US-China trade relations from collapsing under President Donald Trump's tariff policies.
The two sides met in Stockholm in July and agreed in principle to extend the trade truce for another 90 days, significantly reducing steep retaliatory tariffs and allowing rare earth exports from China to the US to resume. Trump also approved extending the current tariffs on Chinese goods, totaling about 55%, until November 10.
TikTok's deadline is likely to be extended
Trade experts say it's unlikely any major breakthrough will emerge from the Spanish talks, but the most likely outcome is an extension of the September 17 deadline for TikTok owner ByteDance to sell its US operations or face a shutdown in the US.
A source close to the Trump administration's discussions on TikTok's future said the deadline would be extended for the fourth time since Trump took office in January. TikTok had not been brought up in previous rounds of talks in Geneva, London or Stockholm, but the Treasury's inclusion of the item on the agenda in Madrid shows the Trump administration's attempt to create political justification for another extension.
"I don't expect anything concrete between the U.S. and China unless there's a face-to-face meeting between President Trump and President Xi Jinping, and this round of talks is really just paving the way for that meeting," said William Rench, a senior researcher at the Center for Strategic and International Studies (CSIS) in Washington.
Trump has repeatedly expressed interest in meeting with the Chinese leader, but Rench believes China will not agree until there is a clear outcome and also wants the US to ease export controls on chips and other high-tech products.
Meanwhile, Wendy Cutler, a former US trade negotiator and head of the Asia Policy Institute at the Asia Society in Washington, said key outcomes are expected to be saved for potential US-China leadership meetings later this year, such as the APEC summit in Seoul in October. These could include a final decision on TikTok, easing restrictions on Chinese purchases of American soybeans, and reducing tariffs related to fentanyl.
"Frankly, China is in no rush to make any deals without significant rewards, including the easing of export controls and tariff reductions, which are top priorities for China. And I don't see the US being prepared to make any major concessions on this front unless it gets something significant in return from China."
Russian oil pressure
The U.S. Treasury Department stated that the Madrid talks also included cooperation in combating money laundering, citing the long-standing U.S. demands for China to address the illicit export of technology goods to Russia that have bolstered its military capabilities in the Ukraine war.
On Friday, Bessent urged G7 allies to impose significant tariffs on imports from China and India to pressure them to stop buying Russian oil, hoping to force Moscow into peace talks through a cut in oil revenue.
G7 finance ministers said Friday they discussed the measure and agreed to expedite the use of frozen Russian assets to support Ukraine's defense.
Both Bessent and Greer issued separate statements saying the G7 alliance should join the US in levying tariffs on countries that buy Russian oil. The US has already imposed an additional 25% tariff on Indian imports over Russian oil purchases, but has so far not imposed similar sanctions on Chinese goods.
China's Ministry of Commerce stated that the Madrid talks will cover issues including US tariffs, the excessive use of export controls, and TikTok. The discussions are scheduled to continue on Monday from 8:00–10:00 AM local time (6:00–8:00 AM GMT), with a press conference from both sides in the afternoon.
Reference: www.reuters.com
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