Completion of the Fourth Round of U.S.-China High-Level Trade Talks
Besant: "Framework Established for Transition to U.S. Ownership"
Fifth Round Planned Within a Month... Greer Hints at Extension of Tariff Truce
The United States and China reached a broad agreement regarding the sale of TikTok's U.S. operations during the fourth round of high-level trade talks held in Madrid, Spain. This meeting also served as a preliminary discussion for a potential U.S.-China summit later this year. The two countries agreed to meet again in a month to discuss various trade issues, including the extension of the tariff truce.
On September 15 (local time), U.S. President Donald Trump stated on Truth Social, his social networking service, "The large-scale trade meeting between the United States and China held in Europe proceeded very smoothly."
He added, "We have also reached an agreement regarding a 'certain' company that young people in our country desperately want," and said, "They will be very pleased." He continued, "I will have a call with President Xi on Friday (the 19th)," emphasizing, "The relationship between the two countries remains very strong."
The United States and China concluded the fourth round of high-level trade negotiations in Madrid, which began the previous day. The 'certain company' mentioned by President Trump refers to TikTok. In April of last year, the U.S. Congress passed the 'TikTok Ban Act' citing national security concerns. As a result, TikTok's Chinese parent company ByteDance was required to sell its U.S. operations or face a service shutdown. During these negotiations, an agreement on the sale was reached. The final deadline for the sale, which has been extended three times, is now set for the 17th, with the possibility of further extension expected.
Scott Besant, U.S. Treasury Secretary and a participant in the negotiations, also confirmed after the talks that the TikTok sale issue had been resolved. He stated, "President Trump and President Xi will speak on Friday to finalize the agreement," and explained, "The framework for an agreement with TikTok is in place. I believe this framework involves transitioning to a U.S.-owned structure."
Jamison Greer, the U.S. Trade Representative who also participated in the negotiations, said, "We focused heavily on TikTok and worked to ensure the agreement was fair to China and fully addressed U.S. national security concerns," confirming, "That objective has been achieved."
Li Chenggang, China's Vice Minister of Commerce and Chief International Trade Negotiator, also stated that there had been "frank, in-depth, and constructive communication" on issues including TikTok, and that a basic agreement had been reached through cooperation.
According to the Wall Street Journal, China had previously refused the U.S. demand for ByteDance to divest its stake, but shifted its position to facilitate President Trump's visit to China. The media outlet reported that Oracle is considered the leading candidate to acquire TikTok.
The United States also left open the possibility of extending the 'tariff truce.' Currently, both countries have reduced their tariff rates by 115 percentage points, with the U.S. applying a 30% tariff and China a 10% tariff on each other's goods. This measure will remain in effect until November 10. Greer stated, "If the talks continue in a positive direction, we are certainly willing to consider additional steps."
This meeting also served as a consultation for a potential U.S.-China summit later this year. The United States is seeking to hold a summit with China on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, at the end of October, while China is reportedly in favor of a bilateral meeting in Beijing. If President Trump's visit to China is realized, China is expected to propose President Xi's visit to the United States for the G20 summit next year.
However, despite the agreement on the TikTok sale issue, disagreements remain on key issues such as fentanyl control and soybean imports. The United States has stated it will lower tariffs on China if China takes measures to eradicate fentanyl distribution, while China insists that the U.S. must first remove the 20% tariff on fentanyl. The United States is also demanding that China increase its imports of soybeans.
The Madrid meeting was the fourth round of high-level trade negotiations, following meetings in Geneva, Switzerland in May, London, United Kingdom in June, and Stockholm, Sweden in July. Both sides plan to hold the fifth round of negotiations next month. Secretary Besant stated, "We will resume trade negotiations at another location in a month."
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