US Treasury Secretary Scott Bessent stated on Monday that the United States is very close to a deal with China over TikTok. The two nations resumed trade talks in Madrid on Sunday. Bessent and Chinese Vice Premier He Lifeng led the discussions.
These meetings aim to bridge gaps in trade and technology. Relations between the world’s top two economies have been tense. The talks are set to last until Wednesday.
TikTok Deadline Looms
Wednesday marks the deadline for TikTok to find a buyer. Otherwise, it faces a ban in the US. Bessent told reporters they are very close to resolving the TikTok issue.
He added that failure to agree on TikTok won’t harm overall US-China ties. Relations remain strong at the highest levels. TikTok belongs to China’s ByteDance company.
Legal Background and Trump’s Stance
A US law requires TikTok’s sale or ban for national security reasons. It was set to start just before President Donald Trump’s January 20 inauguration. Trump, a Republican, paused the ban.
His 2024 campaign used social media heavily. He even expressed fondness for TikTok. In mid-June, Trump extended the deadline by 90 days.
This extension expires on Wednesday. Trump once backed a ban or sale. But he changed his view after believing TikTok helped win young voters in November.
Broader Trade Tensions
The Madrid talks also address Trump’s tariff threats on Chinese imports. Tensions rose earlier this year with high tariffs. These measures disrupted supply chains.
Both sides later agreed to cut duties to 30% on US goods and 10% on Chinese exports. This truce ends in November. Negotiators seek lasting solutions.
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