MADRID: United States and Chinese officials are meeting in Madrid for critical trade discussions addressing longstanding economic tensions and pressing deadlines.
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer are meeting Chinese Vice Premier He Lifeng for their fourth European meeting in four months.
These talks aim to prevent the fractured US-China trade relationship from collapsing under President Donald Trump’s tariff policies.
The discussions include a looming September 17 deadline for TikTok’s Chinese owner ByteDance to divest its US operations or face shutdown.
Trump has approved maintaining current US tariff rates of approximately 55% on Chinese goods until November 10.
Trade experts indicate low expectations for substantial breakthroughs during these Madrid negotiations hosted by Spanish Prime Minister Pedro Sanchez.
The most probable outcome appears to be another extension of TikTok’s divestiture deadline, which would mark the fourth postponement since Trump took office.
TikTok’s inclusion on the official agenda provides political cover for another extension despite congressional pressure from both Republicans and Democrats.
Former trade negotiator Wendy Cutler suggests more substantial agreements might await a potential Trump-Xi meeting later this year.
Such agreements could address TikTok’s national security concerns, Chinese soybean purchases, and fentanyl-related tariffs.
The Madrid talks also cover joint efforts to combat money laundering and illicit technology shipments to Russia that support its war in Ukraine.
Bessent has urged G7 allies to impose meaningful tariffs on China and India to pressure them into stopping Russian oil purchases.
G7 finance ministers have agreed to accelerate discussions about using frozen Russian assets to support Ukraine’s defense efforts.
The Spanish government is leveraging these high-profile talks to enhance its international diplomatic standing and bilateral relations.
Spanish Foreign Minister José Manuel Albares will publicly greet both delegations at the historic Palacio de Santa Cruz venue.
Madrid has been positioning itself as a neutral ground for strategic negotiations, including potential Middle East peace conferences.
These talks occur amid ongoing tensions between Spain and the Trump administration regarding Gaza policy and NATO defense spending commitments. – Reuters