On Sunday, September 14th, the US-China trade teams held a meeting in Madrid, the capital of Spain, focusing on trade and the TikTok issue. The outcome of the meeting and whether substantial progress can be made has garnered significant attention.
American Treasury Secretary Scott Bessent and trade representative Jamieson Greer arrived at the Palacio de Santa Cruz in Valldolid, Spain, where they were greeted by Chinese Vice Premier He Lifeng and Chief Trade Negotiator Li Chenggang.
The Spanish government is making efforts to maximize the exposure of this meeting. Prior to the US-China trade talks, Spanish Foreign Minister José Manuel Albares welcomed the American and Chinese delegations at the Palacio de Santa Cruz.
This marks the fourth meeting between Bessent, Greer, He Lifeng, and China in European cities within four months, aiming to resolve the escalating trade tensions between the two countries, with previous meetings in Geneva, London, and Stockholm.
According to the US Treasury Department, the Madrid meeting will “discuss key national security, economic, and trade issues of mutual concern, including TikTok.”
Trade experts believe that this meeting is unlikely to yield significant breakthroughs. It is speculated that the most probable outcome is the US agreeing to another extension of the deadline for ByteDance, the Chinese parent company of TikTok, to divest its US operations.
The current deadline is September 17th, and if ByteDance does not comply before this date and the US does not extend the deadline, TikTok could face a complete ban in the US.
A source familiar with the Trump administration’s negotiations regarding the future of TikTok reported to Reuters that a consensus between the US and China is not expected. However, it is not ruled out that President Trump may extend the deadline once again. Since taking office in January, Trump has signed three executive orders delaying the ban on TikTok until September 17th.
Wendy Cutler, former US trade representative and head of the Asia Society Policy Institute in Washington, anticipates that more substantial “achievements” will likely be reserved for a possible meeting later this year between Trump and Chinese leader Xi Jinping. The two may meet during the Asia-Pacific Economic Cooperation summit scheduled for late October in Seoul, South Korea.
Cutler suggests that these achievements may include reaching a final agreement to address US national security concerns regarding TikTok, lifting restrictions on China’s purchase of US soybeans, and reducing the fentanyl-related tariffs imposed by the US on Chinese goods. The negotiations in Madrid could lay the groundwork for such a meeting.
However, she indicates that resolving the key economic concerns the US has with China may take several years. These issues include the US’s demand for China to shift its economic model towards more domestic consumption and to reduce reliance on government subsidies for exports.
Cutler believes that unless there are substantial concessions from China in terms of easing export controls and lowering tariffs, China will not be eager to reach an agreement at the Madrid talks, as that is a key priority for China. Similarly, the US will not make significant concessions unless there is a breakthrough in meeting the demands set by the US.
The US Treasury Department stated that the Madrid talks will also address the combating of money laundering networks between the US and China. This includes the US’s demand for China to rigorously crack down on the illegal shipment of technology products to Russia, which are used to support the Russian military in Ukraine.
On Friday, September 12th, Bessent urged G7 allies to impose “meaningful tariffs” on imports from China and India to compel them to cease purchasing Russian oil. This action aims to reduce Russia’s oil revenue and push Putin towards negotiations to end the Russia-Ukraine conflict.
A Spanish government source informed Reuters that the choice of Spain as the host for this latest round of “delicate” talks between the US and China indicates Madrid’s efforts to solidify its position as a strategic venue for high-level negotiations.
Madrid has been striving to become the host for an international peace conference to resolve the Israeli-Palestinian conflict.
It is reported that after tensions with the Trump administration grew, the Spanish government also hopes to use this meeting to strengthen bilateral relations with the US. Spain has criticized Israel’s offensive in Gaza and has refused to commit to allocating 5% of its GDP for defense, unlike other NATO member countries.