The United States is on the verge of reaching an agreement with China over the future of TikTok, Treasury Secretary Scott Bessent said Monday, as both countries resumed high-level trade talks in Madrid.
Bessent and Chinese Vice Premier He Lifeng began discussions on Sunday aimed at easing tensions over trade and technology — flashpoints that have strained relations between the world’s two largest economies. The negotiations are expected to continue until Wednesday, the deadline for TikTok to secure a buyer or face a ban in the US.
“On the TikTok deal itself, we’re very close to resolving the issue,” Bessent told reporters outside Spain’s foreign ministry. “If we don’t reach an agreement, it doesn’t affect the overall relationship between the two countries. It’s still very good at the highest levels.”
TikTok, owned by Chinese tech giant ByteDance, has faced scrutiny in Washington over national security concerns. A federal law requiring either its sale or ban was set to take effect before President Donald Trump’s inauguration on January 20. However, Trump — who has admitted the platform boosted his popularity among younger voters during the 2024 election — temporarily paused the measure. The extension is due to expire Wednesday.
While Trump initially supported a ban or forced divestment, he later vowed to defend the platform, which now boasts nearly two billion users worldwide.
The Madrid talks are also addressing Trump’s renewed threat of steep tariffs on Chinese goods. Earlier this year, both sides imposed tit-for-tat duties that surged into triple digits, disrupting global supply chains. A temporary truce scaled tariffs back to 30 percent on US products and 10 percent on Chinese exports, but that agreement runs out in November.
The outcome of this week’s negotiations could shape not only TikTok’s future in the US but also the trajectory of trade relations between Washington and Beijing.