Big Breakthrough in Madrid: US-China Talks Center on TikTok and Trade

International News: The Spanish capital hosted critical discussions between US Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese officials. The central focus was trade tariffs and the fate of TikTok, the social media giant with millions of young American users. US negotiators pressed for ByteDance, TikTok’s parent company, to divest majority ownership to American stakeholders. Washington threatened a nationwide ban if China refused to comply.

Officials tied the decision to broader economic talks involving tariffs, technology sharing, and market access.Beijing remains cautious, fearing TikTok’s forced sale could set a precedent for Western governments to push Chinese firms into more divestments. Analysts note China sees TikTok as a strategic asset, linking its fate directly to wider trade and political disputes.

Trump Signals Progress

President Trump posted on Truth Social that a “deal was reached on a certain company young people wanted to save.” He described the Madrid talks as successful and said he would personally speak with Chinese President Xi Jinping on Friday.

Broader Trade Disputes

Talks extended beyond TikTok, covering tariffs and Washington’s demand that allies penalize China over purchases of Russian oil. The US has even imposed tariffs on India for similar reasons, which has ironically nudged India closer to China diplomatically in recent months.

These moves highlight how Washington is linking trade policy to broader geopolitical strategy. European partners, however, appear divided on how far they are willing to go. Madrid’s session reflected the growing difficulty of separating digital disputes from wider economic and security concerns.

Rising Tensions and Retaliation

China has not confirmed Trump’s optimistic remarks. Instead, Beijing struck back by launching an antitrust investigation into Nvidia, a US chipmaker. This move is widely interpreted as retaliation amid mounting pressure from Washington over TikTok and broader trade negotiations.

Analysts believe Beijing’s step signals that it can target America’s tech champions if pushed further. The timing, coming right after the Madrid talks, was seen as deliberate. It also underscores how quickly disputes in one sector spill over into others.

Why TikTok Matters Politically

For Washington, banning TikTok poses risks since millions of young voters rely on the app. For Beijing, selling it risks strategic losses. Madrid’s talks marked the fourth round in four months, underscoring how this single app now symbolizes global rivalry. The platform has become more than just entertainment; it is now a political flashpoint.

Trump’s decision to spotlight TikTok shows the weight it carries in domestic politics. For China, keeping TikTok intact preserves both technological pride and soft power.