Sino-US Dialogue in Madrid Focuses on Trade Tensions and TikTok's Future

Senior officials from China and the United States convened in Madrid, Spain, on September 14, 2025, for a critical round of trade discussions. This meeting, the fourth high-level dialogue between the two nations in as many months, addressed complex economic issues including ongoing trade friction, the future of the popular video application TikTok, and the implications of U.S. tariffs on Chinese oil purchases from Russia.

The U.S. delegation was led by Treasury Secretary Scott Bessent and included U.S. Trade Representative Jamieson Greer. They met with their Chinese counterparts, Vice Premier He Lifeng and top trade negotiator Li Chenggang. These dialogues, which have previously taken place in Geneva, London, and Stockholm, aim to navigate the volatile U.S.-China economic relationship, significantly shaped by tariffs implemented under the Trump administration. These tariffs, some reaching approximately 55% on Chinese goods, are currently extended until November 10.

A central point of discussion was the impending deadline for TikTok's parent company, ByteDance, to divest its U.S. operations by September 17 to avoid a ban. Despite previous extensions, the situation remains uncertain, with ByteDance having previously stated that a divestiture is not commercially, technologically, or legally feasible. The U.S. administration's national security concerns continue to exert pressure on the company.

Trade experts expressed that while these high-level discussions are crucial for maintaining communication channels, significant breakthroughs were not widely anticipated in Madrid. The broader context of U.S.-China trade relations has been characterized by policy uncertainty, which a Federal Reserve Bank study suggested could reduce global GDP growth by as much as 1 percentage point. This uncertainty, coupled with retaliatory measures, has impacted various sectors, including U.S. manufacturing, which relies on Chinese inputs and faces challenges exporting to China.

In a move highlighting the intricate geopolitical landscape, Beijing announced investigations into U.S. semiconductor firms shortly before the Madrid talks began. The meeting in Madrid, hosted by Spain, also served as an opportunity for the host nation to strengthen its bilateral ties. These discussions are part of a larger effort to stabilize a relationship marked by considerable volatility, with prior talks yielding temporary truces and extensions of tariff periods.