Madrid / Washington, 15 September 2025 — U.S. and Chinese officials concluded the first day of trade talks in Madrid today, with the looming September 17 deadline for TikTok’s divestment forming a central point of tension. The discussions, held at the baroque Palacio de Santa Cruz, brought together U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, Chinese Vice Premier He Lifeng, and top trade negotiator Li Chenggang.
These talks mark the fourth round of high-level engagement between the two powers over the past four months, following a 90-day trade truce signed in July that eased retaliatory tariffs and reopened China’s supply of rare earth exports to the U.S.
While the Madrid meeting lasted about six hours today, officials emphasized that breakthroughs are unlikely until there is a direct meeting between U.S. President Donald Trump and Chinese President Xi Jinping. Until then, the focus remains on negotiating around key sticking points: tariffs, export controls, and TikTok’s future in the United States. Analysts believe another extension of the September 17 deadline is probable given the lack of resolution on critical issues.
Secretary Bessent described the session as constructive, telling reporters after the meeting: “We’ll start again in the morning.” The talks are expected to continue into Monday, with joint statements likely to follow.
What’s at Stake
At the centre of the tension is TikTok, whose parent company ByteDance must divest its U.S. operations or risk being shut down under existing U.S. law. The September 17 deadline has already been extended multiple times — sources say these Madrid talks could result in yet another reprieve.
Also on the agenda are long-standing U.S. grievances over China’s trade practices, including its export controls and tariff regimes, as well as Beijing’s purchases of Russian oil. The U.S. is pressing for coordinated action among allies to impose tariffs or restrictions on countries trading heavily with Russia, aiming to reduce Moscow’s revenue in light of its ongoing conflict in Ukraine.
The Bigger Picture
Observers believe Spain’s role as host of these negotiations — particularly at its Palacio de Santa Cruz — reflects its ambition to become a diplomatic hub for major global issues, even as immunity issues and past disagreements with the U.S. remain.
However, many expect that real breakthroughs will only emerge if the talks lead to a personal summit between Trump and Xi. Experts warn, though, that any deal regarding TikTok, tariffs, or export controls will need major concessions on both sides — especially from Washington on issues like China’s access to high-tech exports and from Beijing on allowing divestment or oversight.
