Washington, DC [US], September 14 (ANI): Officials from the United States and China are set to meet in Madrid on Sunday for their fourth round of talks aimed at extending a truce in US President Donald Trump’s trade war, The New York Times reported.
The trade war unsettled the global economy earlier this year, but relations have stabilized after several temporary pauses. The current suspension of US tariffs on Chinese imports is scheduled to expire in November, increasing pressure on both sides to maintain progress, the report said.
Trump’s tariffs have fueled inflationary concerns, even as the Federal Reserve prepares to cut interest rates this week to stimulate growth, a move that could also boost inflation. Treasury Secretary Scott Bessent will lead the US delegation, while Chinese Vice Premier He Lifeng will head the talks for Beijing.
A statement from the Treasury Department said discussions would address “national security, economic and trade issues of mutual interest, including TikTok and cooperation on money-laundering networks that threaten both the United States and China.”
China’s state news agency Xinhua confirmed that the two sides would discuss economic and trade matters, including “US unilateral tariff measures, the abuse of export controls, and TikTok.”
According to The New York Times, Trump has until Wednesday to enforce or delay a law requiring TikTok to separate from its Chinese parent, ByteDance, or face a nationwide ban. The president has already postponed the measure three times. Congress passed the bipartisan law last year, citing national security concerns over TikTok’s ties to China.
Trade relations have been further complicated by escalating tariff measures. Trump initially imposed 145 percent tariffs on Chinese imports in April, halting trade before reducing the levy to 30 percent. China responded with a 10 percent duty on American products.
On Saturday, Beijing announced an investigation into exports of certain US-made microchips, following Washington’s decision to add Chinese chipmakers to a trade blacklist a day earlier. These developments are expected to heighten pressure on negotiators.
Talks are also expected to address tariff rollbacks and China’s restrictions on rare earth minerals and magnets critical to US manufacturers. Washington remains concerned about China’s halt on American agricultural imports, which threatens soybean farmers’ livelihoods.
Bessent has criticized China’s industrial overcapacity, calling its economy unbalanced, and has urged Beijing to curb purchases of oil from Russia and Iran.
Trump and Chinese President Xi Jinping could meet next month at the Asia-Pacific Economic Cooperation forum in South Korea, and Trump has indicated he may visit China at Xi’s invitation.
The talks come as Beijing deepens trade ties with other countries to counter falling US exports. Chinese shipments to the United States have dropped by about 15 percent this year, though trade with Southeast Asia, Africa, and other regions is surging. China is on track to surpass last year’s nearly USD 1 trillion trade surplus in 2025.
Despite strong trade figures, China’s domestic economy is under strain from the ongoing dispute. Authorities are discouraging further investments in overcapacity-hit industries to prevent price wars and ease global concerns that a flood of low-cost Chinese goods could undercut local manufacturing, The New York Times reported. (ANI)
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