US Treasury Secretary Scott Bessent is scheduled to meet with Chinese Vice Premier He Lifeng in Madrid next week, with the discussions centred on a range of pressing national security, economic, and trade issues. This visit, part of Bessent’s broader trip to Europe that includes Spain and the United Kingdom, signifies a continuation of high-level dialogue amid the ongoing trade tensions between the world’s two largest economies. The Treasury Department confirmed that topics such as the regulation of TikTok and cooperation on combating money laundering networks, which pose threats to both countries, will be among the key agenda items.

The talks in Madrid represent the fourth round of such negotiations this year, following meetings in London, Geneva, and Stockholm, where both sides agreed on extended 90-day pauses on reciprocal tariffs aimed at averting a full-scale trade war. The discussions will also address strategic industry concerns including rare earth elements, semiconductors, and medicines, reflecting broader economic interdependencies that have complicated the bilateral relationship. TikTok’s future remains a particularly contentious issue; the US Congress has mandated restrictions on the platform’s Chinese parent company ByteDance, with a looming deadline for divestiture that President Trump has extended multiple times. Public opinion in the US remains divided on the ban, with recent surveys indicating only about one-third of Americans support it.

China’s Ministry of Commerce has confirmed Vice Premier He Lifeng will lead a delegation to Spain from September 14 to 17, with an official statement highlighting the agenda of unilateral US tariff measures, export control abuses, and TikTok as focal points for the talks. Beijing’s position emphasises a pushback against what it views as protectionist US policies, especially in agriculture, where China has not met agreed targets for American farm imports, instead turning to alternative suppliers in South America. Meanwhile, the US accuses China of undermining fair trade practices despite the 2020 agreement aimed at boosting those imports.

The timing of these talks is notable against the backdrop of slowly improving relations since April, when both nations imposed escalating tariffs on each other's exports in an escalating trade conflict. Recent diplomatic engagements, including back-to-back meetings between top diplomats and defense chiefs, have fuelled speculation about a possible summit between US President Donald Trump and Chinese leader Xi Jinping. Trump has expressed optimism about visiting China later this year or shortly thereafter, pointing to signs of improving economic ties. The US Secretary of State Marco Rubio has also called for open, constructive dialogue with China, while China’s Defence Minister Dong Jun has warned against efforts to contain or interfere with China, advocating for mutual respect and peaceful military-to-military relations.

Spain’s hosting of the talks is viewed as a diplomatic opportunity amid its somewhat strained relations with the US, especially under the Trump administration. Prior disagreements over Spain’s restrictions on the use of its ports and airspace for arms shipments to Israel and its failure to meet NATO’s defence spending targets have cooled ties, prompting tariff threats from Washington. Nevertheless, the US has continued to utilise Spanish military bases, reflecting ongoing cooperation. Spain has simultaneously deepened its engagement with China, exemplified by Prime Minister Pedro Sanchez’s multiple visits to China in recent years and a neutral stance on the EU’s tariffs on Chinese electric vehicles. Hosting these US-China negotiations in Madrid is perceived as a strategic move by Spain to balance its transatlantic alliance with growing ties to China, potentially gaining leverage in future diplomatic engagements.

Following the Spain visit, Bessent will proceed to London for meetings with British government and private sector officials, before joining President Trump’s official state visit to the UK, which includes a high-profile event with King Charles at Windsor Castle. This European trip underscores the US administration’s multipronged approach to managing complex international relationships, trade tensions, and security concerns as global geopolitical dynamics evolve.

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Source: Noah Wire Services