As of September 15, 2025, officials from the United States and China are entering the second day of crucial trade negotiations in Madrid, Spain. These talks come at a critical time, with the deadline for TikTok’s Chinese parent company, ByteDance, to secure a buyer or risk a ban in the US fast approaching. Led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, the discussions represent the latest effort to resolve the longstanding trade war between the globe’s two economic superpowers.
The negotiations kicked off on Sunday at the Santa Cruz Palace, Spain’s primary foreign ministry office. This venue underscores the international significance of the talks, as both nations seek to mend economic ties strained by years of tariffs and disputes.
The History and Stakes of the Trade War
The US-China trade war has been a major issue since it escalated during President Donald Trump’s first term. High tariffs on imported goods from both sides have affected industries ranging from technology to agriculture, leading to increased costs for consumers and businesses alike. In July 2025, top-level delegations from Beijing and Washington met and agreed to extend a tariffs truce by another 90 days, pushing the expiration to November 10, 2025. This truce dramatically reduced import taxes that had climbed above 100% on each other’s products.
According to the White House, the extension was designed to provide additional time for negotiations on “unfair trade practices” and to tackle pressing national security issues. These concerns include intellectual property theft, forced technology transfers, and imbalances in trade. The current talks in Madrid build on that foundation, aiming to make progress toward a more stable economic relationship.
Beyond tariffs, the discussions are laying the groundwork for a potential high-level summit. Officials anticipate a meeting between President Trump and Chinese President Xi Jinping as early as October 2025, during a scheduled summit in South Korea. Such a face-to-face encounter could be pivotal in breaking deadlocks and fostering long-term agreements.
The TikTok Controversy: A Key Flashpoint
A significant portion of the spotlight during these talks falls on TikTok, the wildly popular short-form video app owned by ByteDance. With around 170 million users in the United States alone, TikTok has become a cultural phenomenon, influencing trends, music, and even politics. However, its Chinese origins have raised alarms about data privacy and national security, prompting fears that user information could be accessed by the Chinese government.
President Trump’s stance on TikTok has evolved dramatically. During his first term, he aggressively pushed for a ban on the app, citing these security risks. But after TikTok played a role in boosting his visibility during the 2024 presidential election, his position softened. In a notable shift, the White House launched its official TikTok account in August 2025, signaling a more accepting approach.
The app’s fate hangs in the balance with a deadline set for Wednesday, September 17, 2025. ByteDance must find a US-based buyer by then, or TikTok could face a nationwide ban. Trump has already delayed this ban three times, and expectations are high for a fourth extension. Speaking to reporters on Sunday, Trump remarked, “We may let [TikTok] die. Or we may… I don’t know. It depends. Up to China, it doesn’t matter too much.” This ambiguous statement reflects the uncertainty surrounding the issue.
Just last month, Trump further downplayed the concerns, stating that national security and privacy issues related to TikTok and ByteDance were “highly overrated.” He suggested he would continue extending the deadline until a suitable buyer emerges, emphasizing the need for a resolution that protects American interests without outright eliminating the platform.
The BBC has reached out to the White House and TikTok for comments, but responses were pending at the time of the original report.
Broader Implications for Global Trade and Technology
The outcome of these Madrid talks could reshape international trade dynamics. A successful resolution might lead to reduced tariffs, boosting economic growth and stabilizing supply chains disrupted by the trade war. Conversely, failure to agree could reignite hostilities, with potential ripple effects on global markets, including stock prices, commodity values, and consumer goods.
TikTok’s situation highlights broader tensions in the tech sector, where national security intersects with innovation and free expression. As one of the world’s most downloaded apps, its potential ban or forced sale could set precedents for how governments regulate foreign-owned digital platforms. This is especially relevant in an era where social media influences public opinion, elections, and cultural exchanges.
Moreover, the talks underscore the interconnectedness of trade and technology. Issues like data sovereignty and cybersecurity are increasingly central to diplomatic negotiations, affecting not just the US and China but allies and trading partners worldwide.
Looking Ahead
As the second day of talks unfolds, the world watches closely. Will the US and China extend the TikTok deadline once more? Can they pave the way for a Trump-Xi meeting that yields substantive progress? These questions remain unanswered, but the stakes are undeniably high. The decisions made in Madrid could influence economic policies, tech regulations, and international relations for years to come.
In the meantime, TikTok users in the US continue to create and share content, unaware of how the geopolitical chess game might alter their favorite app’s future.
