U.S., China Gear Up for High-Stakes Tariff Talks in Spain

(MENAFN) China's Vice Premier He Lifeng and US Treasury Secretary Scott Bessent are scheduled to meet in Spain this week for high-stakes tariff discussions. The Chinese official will be in Madrid from Sunday through Wednesday, as confirmed by the Chinese Commerce Ministry.

The US Treasury Department also affirmed the meeting, noting that He and Bessent will address "key national security, economic, and trade issues of mutual interest, including TikTok and cooperation on money laundering networks that threaten both the United States and China."

TikTok continues to face significant scrutiny in the US, with a nationwide ban looming over national security concerns. In 2024, US Congress passed bipartisan legislation mandating that ByteDance, TikTok’s Chinese parent company, divest its US operations or face a potential ban. The US government has raised concerns over the app’s data-sharing practices with Beijing, citing risks to national security.

However, US President Donald Trump has extended the deadline for the TikTok decision multiple times, most recently in June with a 90-day delay to September 17, marking the third such postponement of a possible ban.

On Friday, a representative from the Chinese Commerce Ministry called on the United States to address the TikTok issue through productive discussions, emphasizing the need for mutual respect and consultation. The spokesperson also stressed the importance of creating an open, fair, and non-discriminatory business environment for Chinese companies operating in the US.

Earlier discussions in July saw both He and Bessent convene in Sweden, where they agreed to extend a pause on tariffs and other trade actions. This move followed an Aug. 12 deadline set by the US for China to finalize a trade agreement, with similar discussions held in Geneva and London before that.

In early August, Trump signed an executive order further delaying tariff decisions on China by another 90 days, with the new deadline set for November 10. Despite the delays, a 10% reciprocal tariff remains in place.

The tariff war between the world’s two largest economies, initiated by Trump, has been a key source of market volatility. While Trump has brokered deals with several nations, including the UK, Japan, and the European Union, the trade talks with China remain ongoing and highly contentious.

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