United States and China are on the brink of resolving their dispute over TikTok, with Treasury Secretary Scott Bessent describing the talks as “very close” to an agreement.
The discussions resumed in Madrid on Sunday between Bessent and Chinese Vice Premier He Lifeng, focusing on narrowing differences over trade and technology ahead of a critical Wednesday deadline.
TikTok, owned by China-based ByteDance, has faced long-standing US national security concerns. A federal law requires TikTok to find a non-Chinese buyer before September 17 or face a ban in the US.
This deadline was originally tied to Donald Trump’s inauguration in January but was extended by 90 days in June. Although Trump initially backed a ban, he later reversed his position, acknowledging TikTok’s significant role in attracting young voters during the 2020 election.
Beyond TikTok, the talks also cover wider trade issues, including ongoing tensions over tariffs. Earlier this year, both countries imposed steep tariffs—30% on Chinese imports in the US and 10% on US goods in China—disrupting global supply chains. A truce is set to expire in November, and the US has accused China of delaying export licenses for rare earth elements, which are vital for industries like defense and electronics.
In response, China has launched investigations into the US semiconductor industry, including probing American IC chips for alleged dumping and reviewing discriminatory practices against Chinese companies. Recently, Chinese authorities accused Nvidia of violating antitrust laws, adding strain to the already tense competition in semiconductors between the two powers.
Amid these economic and technological disputes, diplomatic exchanges suggest a thawing relationship. Defense and diplomatic officials from both sides held back-to-back phone calls last week, signaling potential groundwork for a high-level meeting.
Trump has expressed his intention to visit China later this year or soon after, emphasizing that despite difficulties over TikTok, tariffs, and semiconductors, economic relations between Washington and Beijing remain on an upward path.
Throughout, Beijing has called on Washington to resolve disputes through dialogue based on mutual respect and equal consultation, aiming to avoid confrontation.
Bessent, while hopeful about resolving the TikTok issue soon, insisted that this dispute has not harmed overall bilateral relations, which remain strong at the highest levels.
