US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice-Premier He Lifeng in Madrid on September 14 for the fourth high-level dialogue in as many months. The talks aim to stabilize US-China trade relations, strained by tariff conflicts during the Trump administration. China’s top trade negotiator, Li Chenggang, also attended the discussions.
The last meeting, held in Stockholm in July, led to a 90-day extension of a truce that eased triple-digit retaliatory tariffs and reopened the flow of rare-earth minerals to the US. President Trump has approved keeping US tariffs on Chinese goods, totaling roughly 55%, until at least November 10.
The Madrid talks, hosted by Spanish Prime Minister Pedro Sanchez, are not expected to yield major breakthroughs. Analysts predict that officials may agree to another delay in the divestiture deadline for TikTok. ByteDance, TikTok’s Chinese parent company, faces a September 17 deadline to sell its US operations or risk a ban.
Officials also discussed joint efforts to combat money laundering and US concerns about China’s alleged facilitation of technology shipments to Russia, which may be supporting its war in Ukraine.
Hours before the talks, Beijing announced new measures targeting US semiconductor firms. China’s Ministry of Commerce launched an anti-dumping probe into certain analog IC chips imported from the US, specifically commodity interface and gate driver chips using 40-nanometer and older technologies. The ministry also opened an anti-discrimination investigation into US policies affecting Chinese chipmakers.
These moves followed Washington’s decision on September 12 to add 23 Chinese firms to a trade blacklist, citing national security concerns. Two firms linked to supplying chipmaking equipment to SMIC, China’s largest chipmaker, were among those targeted. The Chinese commerce ministry described the US measures as attempts to contain and suppress China’s development of high-tech industries, including semiconductors and artificial intelligence.
Trade experts say the Madrid meetings are a continuation of cautious diplomacy between the world’s two largest economies. Both sides are navigating complex issues, including tariffs, technology transfers, and national security, while trying to avoid escalating economic conflict.
The discussions in Madrid reflect the ongoing effort to maintain channels of communication amid rising tensions. Both Washington and Beijing emphasize that dialogue is necessary to prevent further disruption in global trade and ensure that supply chains, especially for critical technology and rare-earth minerals, remain functional.
While expectations for concrete agreements remain low, the talks signal a commitment to continued engagement. Observers note that incremental progress, such as extending temporary truce measures or delaying regulatory deadlines, may be the most realistic outcome in the near term.
US and Chinese officials are expected to reconvene in the coming months to monitor the impact of decisions made in Madrid and explore additional steps to reduce trade friction. Maintaining open communication will be key as both countries face domestic pressures and global economic challenges.