Top U.S. and Chinese officials entered a second day of high-level trade negotiations in Spain on Monday, as the future of TikTok in the United States emerged as a key point of tension in an already complex economic dialogue.
The meetings, led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, mark the latest effort by Washington and Beijing to ease long-standing economic frictions and restore stability to a trade relationship strained by tariffs, tech disputes, and geopolitical rivalry.
One issue overshadowing the talks is the looming deadline for TikTok’s Chinese parent company, ByteDance, to divest its U.S. operations or face a potential ban. The Biden administration has already granted three extensions. President Donald Trump, despite previously calling for a ban on the popular video-sharing app, has hinted that a fourth extension is possible.
“We may let TikTok die. Or we may, I don’t know. It depends. Up to China, it doesn’t matter too much,” Trump said Sunday, in comments that suggest a shift from his earlier hardline stance. The app, which has around 170 million U.S. users, remains a political flashpoint, balancing national security concerns with its popularity among American voters.
TikTok’s fate now appears intertwined with broader trade discussions, which also cover tariffs, investment policies, and technology transfer rules. In July, the two countries agreed to a 90-day pause on mutual tariff hikes, allowing space for renewed dialogue. U.S. officials have called the pause “an opportunity for serious negotiation,” while warning that punitive measures could return if talks stall.
Monday’s sessions are expected to lay groundwork for a possible meeting between President Trump and Chinese President Xi Jinping in October, when both leaders will attend a regional summit in South Korea.
Analysts say the outcome of the current negotiations — particularly on TikTok and tariffs — could shape the trajectory of U.S.–China relations heading into 2025, with ripple effects across global trade, supply chains, and investor confidence.
