The United States and China are close to reaching an agreement on social media platform TikTok but a deal could hinge on Chinese demands for trade concessions.
According to Reuters, US Treasury Secretary Scott Bessent before entering a second day of talks in Madrid on Monday said that China trade concession demands could become a hurdle in finalising the trade deal.
The US and China delegations are discussing the divestment from TikTok by Chinese owner Bytedance as part of broader talks on tariffs and economic policy.
"Our Chinese counterparts have come with a very aggressive ask," Bessent told reporters alongside U.S. Trade Representative Jamieson Greer."We will see if we can get there at present. We are not willing to sacrifice national security for a social media app."
US and Chinese officials, led by Vice Premier He Lifeng, concluded a first day of talks in Madrid on Sunday on their strained trade ties, a looming divestiture deadline for TikTok, amid Washington's demands that its allies place tariffs on imports from China over its purchases of Russian oil.
TikTok faces a potential ban in the US unless it moves to US ownership. The most likely result of the Madrid talks is seen as another extension of a deadline for TikTok owner ByteDance to divest its US operations by September 17 or face a US shutdown.
The latest round of US-China negotiations - taking place in the baroque Palacio de Santa Cruz, home to Spain's foreign ministry - are the fourth in four months.