US and China Hold Second Day of Trade Talks as TikTok Deadline Looms
Why the talks matter
The negotiations are the latest attempt to cool an intensifying trade dispute between the world’s two largest economies. Officials are pushing to resolve complex issues that range from intellectual property protections to technology export controls — but the immediate spotlight is on TikTok’s future in the U.S. and whether a divestment deal can be agreed or the deadline will be extended. 1
Where talks stand after day two
Delegations led by U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng met in Madrid for a fresh round of talks. U.S. officials reported progress on technical issues, but negotiators described the wider political and tariff demands as tough and unresolved. Several outlets indicate negotiators were exploring either an agreement on TikTok or another short extension of the divestment deadline. 2
Market and business reaction
Global markets traded cautiously as investors weighed the talks’ prospects. Tech stocks with exposure to China showed volatility amid uncertainty about tariffs and export controls. An accord could ease pressure on companies affected by punitive measures; no deal or a hardline outcome could trigger fresh rounds of tariffs or restrictions with broader supply-chain consequences. 4
What’s at stake for the U.S. and China
For the United States, the negotiations are about protecting national security interests, enforcing stronger IP protections, and securing fair market access for American firms. For China, the goals include preserving access to markets and protecting its leading tech firms — with TikTok acting as a political and economic flashpoint. Any compromise or continued stalemate will influence bilateral relations and global trade dynamics going into 2026. 5
Possible outcomes
- Divestment deal: A U.S.-approved sale or restructuring of TikTok’s U.S. arms could avert a shutdown and placate some congressional concerns.
- Extension: Officials may agree to a short extension of the Sept. 17 deadline to allow more thorough diplomacy — the likely near-term result reported by several outlets. 6
- No deal / enforcement: Failure to reach terms could trigger the law’s enforcement, potentially removing TikTok from U.S. app stores and escalating tariffs or export controls.
FAQ
When is the TikTok deadline?
The current divestment deadline widely reported in the press is September 17, 2025 — though multiple sources indicate the White House has previously extended that deadline and another brief extension is possible depending on negotiation outcomes. 7
Who is negotiating?
U.S. delegation leaders include Treasury Secretary Scott Bessent and U.S. trade representatives; China’s delegation is led by Vice Premier He Lifeng. Talks in Madrid represent a high-level diplomatic effort to resolve several trade and tech-related issues.
How will this affect users and creators on TikTok?
If enforcement occurs, U.S. users could lose access to TikTok or see service disruptions. An approved divestment could keep the platform running but change ownership and data governance arrangements. Creators and small businesses that rely on TikTok for reach would face disruption until a long-term solution is implemented.
