US-China trade talks in Madrid strained by TikTok, export controls

US Treasury Secretary Scott Bessent said Chinese negotiators had made “aggressive asks” during high-stakes talks in Madrid, where disputes over TikTok and export controls are intensifying.

“I think on the TikTok deal itself, we are very close or we’ve resolved the issue,” Bessent told reporters on September 15, arriving with US Trade Representative Jamieson Greer for a second day of negotiations. Greer noted that while discussions with Chinese Vice Premier He Lifeng touched on trade, they hadn’t “found a path forward on that," Bloomberg writes. 

Minutes after Bessent spoke, Beijing announced Nvidia Corp. had violated its anti-monopoly laws—a move seen as highlighting US chip restrictions. A US official said China wants to link trade demands to the TikTok deal, while Washington insists on separating the issues.

TikTok faces a US ban unless its Chinese parent ByteDance sells its American operations by a looming deadline. Former President Donald Trump said on September 14 his administration was prepared to “let it die.”

“This is more like a war of words,” said George Chen of The Asia Group, warning that a lack of progress in Madrid would be troubling.

The talks come as Washington and Beijing prepare for a possible Trump-Xi meeting at a South Korea summit. A fragile truce on tariffs up to 145% holds until mid-November, while Trump has urged NATO allies to impose 100% tariffs on China for buying Russian oil. Beijing has vowed “resolute countermeasures.”

The first round of Madrid talks on September 14 lasted nearly six hours, covering TikTok, trade and economic issues. Reuters reported the Trump administration may extend the deadline for TikTok’s divestiture despite legal limits, with a potential US buyer already lined up.

By Sabina Mammadli