US, China Officials To Discuss Trade And TikTok Issues In Madrid

US Treasury Secretary Scott Bessent will meet with Chinese Vice Premier He Lifeng in Madrid to discuss trade, economic and national security issues in another sign that talks between the two sides are heating up.

The discussions next week will also cover TikTok’s status and efforts to combat money laundering, according to a schedule released by the Treasury Department on Thursday.

The economic talks come as Washington and Beijing have engaged in a flurry of diplomatic outreach this week, smoothing the path for a potential meeting between Xi Jinping and Donald Trump.

Top defense and foreign policy officials from both sides held what the US characterized as “candid and constructive” conversations. With Xi and Trump expected to attend a summit in South Korea next month, the exchanges may smooth the path to their first face-to-face encounter since Trump returned to office.

The planned dialogue between Bessent and He is part of a Sept. 12-18 trip that the US official is making to Spain and Britain, where he’s scheduled to meet his counterparts. Bessent’s plan was earlier reported by Reuters.

The timing is particularly delicate for the world’s two largest economies, as a 90-day tariff truce between the nations is set to expire in early November. The temporary agreement has prevented levies from escalating to sky-high levels, but its expiration looms as a potential flashpoint for renewed economic warfare.

Trump has maintained his tough stance on trade, telling European officials this week he’s willing to impose sweeping new tariffs on China over its support for Russia. Such moves could derail the diplomatic progress and complicate efforts to reach any broader trade agreement.