US and Chinese delegations are continuing trade and TikTok-related talks in Madrid into a second day on Monday (Sept 15). The fourth round of negotiations in four months began at Spain's Palacio de Santa Cruz, home to the foreign ministry, and concluded its first day on Sunday after roughly six hours with no clear breakthrough. Discussions focused on TikTok, tariffs, and broader economic issues, according to a US official.

Led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, the delegations have been meeting in European cities since May to resolve disputes that led President Trump to impose tariffs on Chinese imports and prompted retaliatory measures by China, including high import duties on US goods and halting rare earth exports. Their previous meeting in Stockholm in July resulted in a 90-day trade truce, easing triple-digit retaliatory tariffs and resuming rare-earth shipments.

Analysts have tempered expectations for Madrid, predicting the most likely outcome is a further extension of the Sept 17 deadline for TikTok’s Chinese owner, ByteDance, to divest its US operations to avoid a shutdown. William Reinsch, senior trade adviser at the Center for Strategic and International Studies, noted that any substantive progress would likely require a direct Trump-Xi meeting. China is reportedly seeking further easing of US export controls on chips and other high-tech goods before agreeing to such a meeting.

China’s embassy in Madrid suggested a concluding news conference on Monday afternoon, signaling a potentially quick wrap-up, although more complex negotiations, like London talks on rare-earth shipments, have previously extended to a third day. Bessent is scheduled to meet British Finance Minister Rachel Reeves in London on Tuesday ahead of Trump’s state visit with King Charles starting Wednesday.