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US-China Trade Talks in Spain Continue as TikTok Ban Deadline Nears
US and Chinese negotiators are holding a second day of high-level trade talks in Spain on Monday, with the future of TikTok in the US casting a long shadow over the discussions. The talks are being led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, marking the latest attempt by Washington and Beijing to ease economic tensions that have dominated relations for years.
The meetings come as the deadline for TikTok’s Chinese parent company, ByteDance, to divest its ownership or face a ban in the United States approaches. The Biden administration has already extended the deadline three times, and President Donald Trump has hinted at a fourth extension, despite repeatedly calling for the app’s ban during his first term. The app, which boasts around 170 million American users, has been at the centre of Washington’s concerns over national security, privacy, and Chinese influence.
Trump’s recent comments, however, have signalled a softer position. Speaking on Sunday, he said, “We may let TikTok die. Or we may, I don’t know. It depends. Up to China, it doesn’t matter too much.” His remarks reflect the political tightrope he faces: balancing calls for a tougher stance on Beijing with the app’s popularity among US voters, which surged during his 2024 presidential campaign. The White House even launched its own TikTok account earlier this year, underlining the app’s political relevance.
Beyond TikTok, negotiators are expected to discuss broader trade issues, including tariffs, investment flows, and technology transfers. In July, both sides agreed to a temporary 90-day extension of their tariffs truce, pausing import duties that had climbed to more than 100% on certain goods. The White House said the reprieve was designed to allow “serious dialogue” on unfair trade practices and to reduce the risk of escalation.
Monday’s talks are also laying the groundwork for a possible meeting between Trump and Chinese President Xi Jinping in October, when both leaders are scheduled to attend a regional summit in South Korea. Observers say whether the trade truce holds and whether TikTok survives in its current form could set the tone for the next phase of US-China relations, with implications for global markets and investment.
