China, US ‘very close’ on TikTok deal as tariff talks continue for 2nd day in Spain

China and the US are “very close” to a deal on social media app TikTok, Washington’s top trade negotiator said Monday as the two sides resumed the fourth round of talks in Spain's capital Madrid.

“We made very good progress on the technical details of the (tariffs) agreement,” US Treasury Secretary Scott Bessent said, about talks with the Chinese side, which resumed Sunday.

“In terms of the overall agreement itself, our Chinese counterparts have come with very aggressive ask, we will see if we can get there,” Bessent said.

Chinese Vice-Premier He Lifeng and Bessent are leading their delegations in crucial talks with the tariff truce on Chinese imports extended until November. The talks will continue for four days through Wednesday.

According to the US Treasury Department, talks will include "key national security, economic, and trade issues of mutual interest, including TikTok and cooperating on money laundering networks that threaten both the United States and China."

TikTok faces a nationwide ban on national security grounds in the US.

“At present, we are not willing to sacrifice our national security for a social media app,” Bessent said.

“On TikTok deal itself, we are very close or we have resolved the issue,” he added. “There are range of other asks that are unresolved.”

However, Bessent said: “It is important… if we don’t reach an agreement on TikTok, it doesn’t reflect the overall relationship between the two countries. It is still very good at the highest level.”

In Beijing, the Commerce Ministry said China opposes economic and trade restrictions against China "under the pretext of so-called 'Russia-related' issues."

The ministry was reacting to US demand for the G7 and NATO member nations to impose 50% to 100% tariffs on China over the purchase of Russian oil.

Dubbing such moves a "classic example of unilateral bullying and economic coercion. the ministry warned, "if any party undermines China's interests, China will take all necessary measures to safeguard its legitimate rights and interests."

- TikTok ban

The US Congress passed bipartisan legislation in 2024 requiring ByteDance, TikTok's Chinese parent company, to divest US operations or face a nationwide ban due to national security concerns about potential data sharing with Beijing.

But in a June executive order, US President Donald Trump extended the TikTok enforcement deadline by 90 days to Sept. 17 – his third delay of the potential ban.

In early August, Trump signed an executive order and extended a tariff suspension on China for another 90 days until Nov. 10.

But a 10% reciprocal tariff remains in effect during the suspension.

The world’s top two economies were engaged in a tariff war, initiated by Trump, roiling markets before a mutual rollback of staggering levies.

Trump has reached deals with the UK, South Korea, Japan, and the EU, among other nations, and continues to hold talks with many others.

The latest talks between Beijing and Washington come amid rising hopes that Chinese and US leaders could meet next month on the sidelines of a summit of the Asia-Pacific Economic Cooperation in South Korea.