The United States (U.S.) and China are once again negotiating over the future of TikTok, with officials noting cautious progress but warning that national security concerns remain non-negotiable.
Talks resumed in Madrid on Monday, being the fourth round of discussions in as many months between delegations led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.
The discussions cover far more than TikTok, as tariffs, rare earth exports, and economic ties are all on the table.
Bessent, speaking alongside U.S. Trade Representative Jamieson Greer, stressed that Washington would not compromise on security. “We are not willing to sacrifice national security for a social media app,” he said, adding that Beijing had come forward with “a very aggressive ask.”
While both sides say technical progress has been made, the sticking points go deeper. For Washington, the divestment of TikTok’s U.S. arm remains a red line. For Beijing, TikTok is part of a negotiation package that includes tariffs and long-standing export restrictions.
Greer stated that, “From the Chinese perspective, they view as part and parcel of the potential TikTok deal a variety of matters, whether it’s tariffs or other measures that have been taken over years.”
The September 17 deadline for ByteDance to sell TikTok’s U.S. operations is fast approaching. It is already the fourth extension granted by President Donald Trump this year.
Trump himself has spoken about flexibility, saying: “We may let it die, or we may… I don’t know. It depends on China.” Analysts note the political undertone: TikTok’s popularity with younger voters has given the White House leverage that goes beyond trade.
But the divestment itself is not straightforward. China classifies TikTok’s algorithm as a sensitive export, complicating any potential sale to U.S. buyers. Earlier this year, Beijing blocked a proposed restructuring of TikTok’s U.S. operations after Trump imposed steep tariffs.
The negotiations are also taking place against the backdrop of a fragile truce in the wider trade war. In July, China agreed to resume rare earth exports to the United States, crucial for defence and technology sectors. Yet Beijing has withheld its quota data for 2025, pointing to rare earths that may once again be used as a bargaining chip.
For now, tariffs remain partially reduced, U.S. duties stand at 30% on Chinese goods and China has imposed 10% on American exports. These reductions expire in November, after which Washington plans to maintain tariffs of up to 55% on Chinese imports unless a new deal is reached.
Despite the high stakes, expectations for a breakthrough in Madrid are low. William Reinsch, senior trade adviser at the Center for Strategic and International Studies, told reporters: “I’m not expecting anything substantive between the United States and China unless and until there is a one-on-one meeting between Trump and Xi. Setting that up is really what these talks are all about.”
Such a meeting may take place in October during the APEC summit in South Korea, but Beijing is unlikely to agree without significant concessions, particularly on export controls and tariff rollbacks.
For now, both sides appear willing to extend deadlines rather than risk collapse. A concluding press briefing in Madrid was tentatively scheduled, but whether it will announce progress or simply another pause in a long-running case is still unknown.
