Wider US-China Negotiations
The Madrid negotiations were the latest in a series of meetings between the US and China, following previous rounds in Geneva, London, and Stockholm. These talks took place against the backdrop of ongoing discussions about a possible summit between Trump and Xi. The Financial Times reported that Beijing had formally invited Trump to visit for a summit in China, but the White House had not yet responded.
The hesitation in Washington stemmed from limited progress on broader trade issues, particularly concerning fentanyl, as well as internal debate within the Trump administration about whether a meeting with Xi should occur in Beijing. Some officials suggested that the leaders instead meet on the sidelines of the Asia-Pacific Economic Cooperation forum, scheduled for October 31 in South Korea. Resolving the TikTok issue is seen as removing a significant obstacle that has complicated the broader trade discussions, though disagreements remain over US demands for China to curb exports of fentanyl precursor chemicals before tariffs related to the substance can be reduced.
US Trade Representative Jamieson Greer, also in Madrid, said it was possible another short extension of the TikTok deadline would be required to finalize the deal but stressed that no further rolling extensions would be offered. “One more deadline extension might be necessary,” he said.
Nvidia Investigation Adds Pressure
As Bessent continued negotiations with Chinese Vice-Premier He Lifeng, the Chinese State Administration for Market Regulation (SAMR) announced it had determined that US chipmaker Nvidia violated the country’s antitrust laws. The preliminary finding stated that Nvidia failed to fully comply with commitments made during its acquisition of Mellanox Technologies, an Israeli-US supplier of networking products, in 2020. Sources familiar with the situation said SAMR had reached this conclusion weeks earlier but released the information during the Madrid talks to strengthen China’s negotiating position.
When asked if Nvidia’s case had been discussed, Bessent acknowledged it was raised, commenting: “We discussed the poor timing of the Nvidia investigation [on] the day of these talks.”
Trump Signals TikTok Agreement Nears
The developments in Madrid suggest that both the United States and China are moving closer to resolving the long-running dispute over TikTok’s future in the US. Trump’s remarks and Bessent’s confirmation of a framework deal point toward a significant step forward, though the final approval rests on the upcoming call between Trump and Xi. While the resolution of the TikTok matter may help clear one obstacle, major disagreements remain in broader trade negotiations, particularly regarding fentanyl exports and tariffs. The outcome of Friday’s discussions could play a decisive role in shaping the future of both the TikTok deal and the overall trajectory of US-China relations.
