Tiktok Issue Between US And China 'Very Close' To Resolution: US Treasury Secretary Scott Bessent Says

(MENAFN- Live Mint) The United States and China are“very close” to reaching an agreement on the issue surrounding the popular short video app TikTok, US Treasury Secretary Scott Bessent said.

The statement came as trade discussions resumed in Madrid to resolve tensions between the two countries. Even if a deal is finalised over Chinese divestment from TikTok, it would not affect relations, Reuters reported, citing Bessent.

The TikTok issue stems from the US pushing ByteDance , the app's Chinese parent company, to either divest its US operations or face a ban in the country, citing national security concerns.

Trade issues remain unresolved

Speaking of the progress in resolving the TikTok issue, Bessent stated,“I think on the TikTok deal itself, we are very close or we've resolved the issue.” However, he also added that some trade issues largely remain unresolved.“There is a range of other asks that are unresolved,” Bessent added.

Also Read | 'We may let it die': Trump likely to push deadline on TikTok sale or divestment

Bessent and US Trade Representative Jamieson Greer began a second day of dialogue with their Chinese counterparts in the Spanish capital to discuss trade imbalances. After the dialogue, Greer told the reporters that they had not yet“found a path forward on that.”

The treasury secretary also noted that the Chinese delegation, led by Vice Premier He Lifeng, made an“aggressive ask” in talks, without specifying what that was about, Bloomberg reported.

Trump and Xi to attend summit soon

The latest round of negotiations came as the world's two largest economies increased their engagement ahead of a potential meeting between Donald Trump and Xi Jinping.

The leaders are scheduled to attend a summit in South Korea as soon as next month. Bloomberg reported that the countries' foreign ministers and defence ministers also held calls last week to help clear the path for a possible summit.

TikTok deadline looms

The short-video app TikTok is owned by ByteDance Ltd., which is facing a deadline this week to reach a deal to ensure its continued operations in the US. Reuters earlier reported that the Trump administration is expected to again extend the deadline for TikTok divestiture.

Also Read | Scott Bessent to meet Chinese Vice Premier Lifeng in Madrid: What's on agenda? Also Read | US, China Officials to Discuss Trade and TikTok Issues in Madrid

The first day of the Madrid talks lasted for about six hours on Sunday, September 14, according to a senior Treasury official. Bloomberg said in a news report that different topics, such as TikTok, trade, and the economy, were extensively discussed.

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