US, China Conclude Talks in Spain

Delegations from the United States and China concluded trade talks in Madrid, addressing ongoing tensions in their economic relationship. 

Key issues discussed included the impending deadline for the sale of the Chinese short-video app TikTok, and the US’s pressure on its allies to impose tariffs on China over its purchases of Russian oil.

The talks will resume on Monday, with international attention focused on the outcome of the discussions between the world’s two largest economies. US Treasury Secretary Scott Pessen and US Trade Representative Jameson Greer met earlier with Chinese delegation members, including Chinese Vice Premier He Lifeng and senior trade negotiator Li Chenggang, at the Santa Cruz Palace in Madrid, which houses Spain’s Ministry of Foreign Affairs.

This round of talks marks the fourth such meeting in four months, with prior discussions held in European cities. These meetings aim to prevent the further deterioration of US-China trade relations, which have been heavily impacted by the tariffs imposed by former President Donald Trump.

The most recent meeting, held in Stockholm in July, saw both parties agree in principle to extend a 90-day trade truce. 

This agreement significantly reduced retaliatory tariffs, cutting down three-digit tariffs on both sides and resuming the flow of rare earth minerals from China to the US. However, President Trump’s administration has continued to maintain US tariffs on Chinese goods, which remain around 55%. These rates are expected to remain in effect until November 10, 2025.

Experts are skeptical that the Madrid talks will yield any groundbreaking results, particularly regarding TikTok. The app, owned by Chinese company ByteDance, is at the center of a high-stakes debate over national security concerns in the US. Sources familiar with the Trump administration’s discussions suggest that, despite no expected breakthrough, the deadline for ByteDance to divest from its US operations by September 17, 2025 will likely be extended again, marking the fourth extension since Trump’s administration took office in January 2025.

While TikTok was not previously discussed in past trade talks in Geneva, London, and Stockholm, its inclusion in the Madrid talks signifies its importance on the trade agenda. 

The Trump administration sees this as an opportunity to politically justify another extension, which could also receive support from both Republican and Democratic members of Congress. The bipartisan support stems from the idea that forcing ByteDance to sell TikTok to a US entity could mitigate national security risks.

Beyond the TikTok issue, the Russian oil purchases by China were also a major topic. The US has been pressuring its G7 allies to impose "meaningful tariffs" on imports from China and India, demanding that both countries stop buying Russian oil. The aim is to reduce Moscow's oil revenues, which fund its military operations in Ukraine, and to encourage Russia to participate in peace talks.

Scott Pessen urged G7 allies on Friday to ramp up pressure on China and India to halt their purchases of Russian oil, stressing that a unified global effort would cut off the funds fueling President Vladimir Putin’s war machine. At the same time, G7 finance ministers agreed to accelerate discussions about using frozen Russian assets to support Ukraine’s defense efforts.

In a separate statement, Pessen and Greer made it clear that the US is pushing for tariffs on Chinese oil purchases to disrupt Russia's revenue streams. The US officials argued that only through a coordinated economic effort can they exert enough pressure on Russia to end its "unjustified killing" in Ukraine.