The United States is “very close” to striking a deal with China over TikTok, Treasury Secretary Scott Bessent confirmed Monday, signaling a possible resolution to the years-long standoff over the popular video-sharing platform. The announcement comes just days before a federal deadline that could force TikTok to either find a non-Chinese buyer or face an outright ban.
Bessent made the remarks in Madrid, where he and Chinese Vice Premier He Lifeng opened a new round of high-level trade and technology talks. The meetings, which began Sunday, are set to continue through Wednesday, the very day TikTok’s fate will be decided.
“On the TikTok deal itself, we’re very close to resolving the issue,” Bessent told reporters outside Spain’s foreign ministry, adding that the overall US-China relationship “remains very good at the highest levels” regardless of whether the app’s future is settled this week.
TikTok, owned by Beijing-based ByteDance, has faced mounting pressure from Washington over national security concerns. Lawmakers and intelligence officials fear the platform could allow Chinese authorities to access data from its more than 150 million American users, a claim TikTok has repeatedly denied.
Trump’s role and a delicate deadline
The deadline stems from a federal law mandating TikTok’s sale or ban on national security grounds. The law was scheduled to take effect just a day before Donald Trump’s January 20 inauguration. But Trump, whose 2024 election campaign leaned heavily on social media and who has publicly praised TikTok, put the measure on hold and granted a 90-day extension.
That reprieve is set to expire Wednesday. The decision puts Trump in a politically complex position: his administration initially pushed for either a ban or forced divestment, yet he has since argued that TikTok helps him connect with younger voters, a demographic that proved crucial to his return to the White House.
“This is one of the rare cases where political strategy and national security policy collide head-on,” said Chris Messer, a Washington-based technology policy analyst. “Trump wants to keep his base energized on TikTok, but his administration has also been the most aggressive in challenging Chinese tech influence.”
The deadline has sparked intense negotiations, with potential buyers reportedly including major US technology and investment firms. However, any sale would need approval not only from Washington but also from Beijing, which has imposed restrictions on the export of algorithms, a move widely seen as a way to complicate or delay TikTok’s forced sale.
Talks broaden beyond TikTok
The TikTok issue is only one part of a broader set of disputes that Bessent and He Lifeng are attempting to address in Madrid. The talks also cover trade tariffs, supply chain disruptions, and technology transfers that have strained relations between the world’s two largest economies.
Earlier this year, tit-for-tat tariffs between the US and China climbed to triple digits, snarling global supply chains and driving up costs for manufacturers. While the two sides later agreed to reduce duties — with the US imposing 30 percent tariffs on Chinese imports and Beijing countering with 10 percent — the temporary truce is due to expire in November.
Beijing has also escalated its scrutiny of US semiconductor companies. Over the weekend, China’s commerce ministry launched two investigations targeting US integrated circuits, accusing some companies of dumping chips below market value. On Monday, Chinese officials said Nvidia, the world’s leading AI chipmaker, had violated the country’s antitrust rules and would face an additional probe.
These investigations underscore the intensifying battle for technological dominance between Washington and Beijing. Rare earth minerals, which are critical for everything from electric vehicles to missile systems, have also become a flashpoint, with US officials accusing China of slow-walking export approvals.
Despite these tensions, analysts say the renewed dialogue could mark a step toward stabilizing relations, and perhaps even pave the way for a meeting between Trump and Chinese President Xi Jinping later this year. Trump himself has hinted that he expects to visit China “this year or shortly afterwards,” signaling optimism about the future of US-China economic ties.
The coming days will be decisive. If TikTok secures a deal, it could serve as a symbolic breakthrough in US-China tech relations. If not, the platform could be banned nationwide, potentially cutting off millions of users, and further escalating an already volatile rivalry between Washington and Beijing.
Discover more from RainSMediaRadio
Subscribe to get the latest posts sent to your email.
