US-China Madrid Trade Talks Special Edition
High Stakes in Madrid: U.S.–China Trade Negotiators Face Off
Next week (September 14-17), Madrid will become the epicenter of global trade diplomacy as U.S. Treasury envoy Scott Bessent meets with Chinese Vice Premier He Lifeng. The negotiation table is loaded: tariffs, export controls, TikTok, and agriculture are all set to define the future of cross-Pacific relations.
Unpacking the Agenda: Tariffs, Export Controls, And TikTok
From China’s Ministry of Commerce, unilateral tariff measures, misuse of export controls, and TikTok are the main topics of this round of talks.
• Unilateral Tariffs: With the current 90-day tariff truce expiring in November, both sides are racing to avoid a costly escalation. The American position: roll back China’s retaliatory duties, especially those impacting Midwest staples. China is holding firm, signaling leverage through alternative suppliers and regulatory upgrades.
• Export Controls: China’s leadership will push back against what it sees as “abuse” of U.S. export controls, particularly in semiconductors and medical supplies. Beijing seeks fairer trade terms for vital sectors and hopes for a less politicized technology market.
• TikTok’s Fate: The clock ticks for TikTok. U.S. lawmakers’ demand for ByteDance to divest its American operation is creating headlines. Trump, who launched a TikTok account last month, has extended a deadline for TikTok to divest its U.S. assets until September 17.
China’s response? “China remains unwavering in its determination to safeguard the legitimate rights and interests of its enterprises and will review the TikTok matter in accordance with laws and regulations. The Chinese government attaches great importance to data privacy and security. It has never and will never require enterprises or individuals to collect or provide data located outside China's borders in violation of local laws.”
Moreover, enhanced domestic privacy oversight, a new regulation (No major Western media outlets have noticed so far!) requiring major platforms to establish independent personal information protection committees, showcases Beijing’s commitment to transparency and data governance.
Broader Context
• The meetings follow prior high-level U.S.-China talks in London, Geneva, and Stockholm, each aiming to defuse ongoing trade, technology, and investment tensions.
• The outcome will influence not only U.S.-China relations but broader policy alignments with other trading partners ahead of possible Xi-Trump and Trump-King Charles summits in Europe next month. (APEC South Korea 2025 will be from Fri, Oct 31, 2025 to Sat, Nov 1, 2025. This is a very possible summit time for Xi and Trump.)
Privacy Regulation: China’s New Compliance Framework: A missed news from the Western media 国家互联网信息办公室:《大型网络平台设立个人信息保护监督委员会规定（征求意见稿）》
China’s Cyberspace Administration now mandates all large internet platforms to install independent Personal Information Protection Supervisory Committees, with external experts, transparent procedures, and public reporting. This development is meant to reassure international partners that Chinese tech giants won’t be forced into unlawful data disclosures, and may become a central point in the TikTok negotiations, where U.S. officials seek tangible guarantees for American user data.
(I will put more details below)
Soybeans: The Agricultural Flashpoint
For U.S. farmers, Madrid’s talks are urgent. American soybean exports to China have lagged dramatically this season, battered by tariffs and mounting competition from Brazil. Powerful agriculture groups are asking Washington to secure new Chinese commitments and reverse years of declining sales. Beijing, meanwhile, has diversified its imports and holds back from making big promises, using agriculture as a bargaining chip for broader concessions.
Looking Ahead: Real Progress or Tactical Pause?
The Madrid round is being watched for signs of a breakthrough, but officials on both sides are cautious. TikTok’s future, the scope of China’s privacy reforms, and soybean dealmaking all represent opportunities—yet none will be truly resolved without structural trade and regulatory changes.
Key Takeaways:
• China’s new privacy committee rule aims to improve platform oversight and could be used to address U.S. security concerns around TikTok.
• Soybeans remain a sore point, emblematic of broader trade imbalances and Chinese supply diversification tactics.
• Economic security, regulatory trust, and agricultural ties will shape the evolving U.S.–China relationship in this crucial autumn round.
Stay tuned for analysis as Madrid’s negotiations unfold—and watch for new flashpoints in the world’s most pivotal bilateral trade relationship.
China’s Cyberspace Administration has issued new rules requiring large online platforms to establish an independent Personal Information Protection Supervisory Committee as part of a strengthened data protection regime.
Key Points of the Regulation
