Delegations from the United States and China arrived in Madrid on Sunday, September 14, 2025, for their fourth round of high-stakes trade talks, with the fate of TikTok in the U.S. emerging as a pivotal condition for any progress. The negotiations, which will run for four days, bring together U.S. Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng at a moment when global economic stability hangs in the balance.
According to the South China Morning Post (SCMP), China made it clear just hours before the talks began that TikTok’s continued operation in the United States is a non-negotiable prerequisite for moving forward in trade discussions. This condition was outlined in a commentary published in the People’s Daily, the official mouthpiece of the Communist Party, which asserted that “China is open to dialogue with the US on trade issues, but Washington must provide open, fair, non-discriminatory conditions for Chinese enterprises, including the Chinese-owned short-video platform.”
The stakes are high for both sides. The trade war that began earlier in 2025 rattled markets and stoked inflationary pressures worldwide, but a series of temporary truces have helped stabilize relations. Now, with the latest pause on U.S. tariffs on Chinese imports set to expire in November, officials face mounting pressure to prevent another economic shock. As The New York Times reported, “Officials from both countries are under pressure to prevent relations from backsliding.”
The talks’ agenda is broad, but TikTok stands out as a particularly thorny issue. Last year, the U.S. Congress passed bipartisan legislation mandating a nationwide ban on TikTok unless its Chinese parent, ByteDance, divested its controlling stake by January 19, 2025. Despite the Supreme Court upholding the law, President Donald Trump has delayed enforcement three times via executive order, with the latest deadline now looming on September 17.
“Mr. Trump has until Wednesday to enforce or delay a law requiring TikTok to be separated from its Chinese owner, ByteDance, or face a ban in the United States,” The New York Times explained. The president’s repeated extensions underscore the political and economic complexities at play. TikTok, after all, has amassed a massive U.S. user base, is “deeply loved by the American people and has made positive contributions to promoting US employment and stimulating consumption,” as the People’s Daily commentary emphasized.
China’s position is unyielding. The People’s Daily article argued that TikTok’s growth in the U.S. was “a result of market principles and corporate innovation” and that its legal operations deserve fair treatment. The commentary accused the U.S. of “politicizing, instrumentalising and over-securitising economic issues,” warning that such actions damage both corporate rights and the credibility of the U.S. market. “If the US insists on harming the legitimate interests of Chinese companies, China will take necessary measures to firmly safeguard national interests and the legal rights of enterprises,” the editorial stated.
For American negotiators, national security is the core concern. As the U.S. Treasury Department noted in its statement, the talks will focus on “national security, economic and trade issues of mutual interest, including TikTok and cooperating on money-laundering networks that threaten both the United States and China.” The U.S. has long argued that TikTok’s ties to China pose unacceptable risks, given fears that user data could be accessed or misused by the Chinese government. Congress’s bipartisan ban was driven by these anxieties, even as TikTok maintains it operates independently and in compliance with U.S. law.
The Chinese government has consistently pushed back against these allegations. According to the South China Morning Post, Beijing insists that “the Chinese government has never and will never require companies or individuals to collect or provide data located outside China for the Chinese government in a way that violates local laws.” Furthermore, China argues that any commercial arrangements involving Chinese firms, including potential technology transfers, must comply with Chinese laws and require government approval. The underlying message is that Washington’s demands for ByteDance to sell TikTok are not just a business matter—they strike at the heart of China’s regulatory sovereignty.
While TikTok dominates headlines, the broader talks will also address tariffs, export controls, and cooperation against money-laundering networks that threaten both countries. The Xinhua state news agency confirmed that “the two sides would discuss economic and trade issues including the U.S. unilateral tariff measures, the abuse of export controls and TikTok.” These are not minor details: tariffs and export restrictions have been major sources of friction since the trade war began, and both sides are eager to avoid a return to the punitive measures that rattled markets earlier this year.
There is a sense of cautious optimism, albeit tinged with realism. The previous three rounds of talks achieved, in the words of Chinese officials, a “positive consensus” and helped stabilize the trade relationship. Yet, as the People’s Daily commentary warned, “always thinking about taking ‘advantage’ and making the other side ‘suffer losses’ is by no means a way for long-term coexistence.” The message is clear: China expects mutual respect and equal consultation, not unilateral pressure.
At home, President Trump faces his own set of challenges. His tariffs on Chinese imports have contributed to persistent inflation, prompting the Federal Reserve to consider interest rate cuts in an effort to stimulate growth—though such moves can also fuel further inflation. The economic stakes are high for American consumers and businesses alike, many of whom rely on Chinese goods and supply chains. With the November tariff truce set to expire, the outcome of these talks could have far-reaching consequences for everything from the price of smartphones to the stability of global markets.
For now, all eyes are on Madrid. The next few days will determine not only the fate of TikTok in the U.S., but also the trajectory of the world’s most consequential economic relationship. As both sides sit down at the negotiating table, the hope is that dialogue—not brinkmanship—will prevail.
Whatever the outcome, the message from both capitals is unmistakable: the stakes are too high for either side to walk away lightly.
