China and US Trade Teams Hold Talks in Madrid, Spain Amid Global Economic Uncertainty

Strategic Insights -

China's international trade representative Li Chenggang and his US counterparts held a new round of talks in Madrid, Spain, on Sunday and Monday, following discussions in Switzerland, Britain, and Sweden. The talks' agenda was more concrete and in-depth, signaling a more challenging stage in the dialogue. The two sides reached a basic framework consensus on resolving TikTok-related concerns through cooperation, reducing investment barriers, and promoting economic and trade ties.

Key Takeaways:

  • The talks marked a significant step forward in the dialogue between China and the US, with a more concrete and in-depth agenda compared to previous rounds.
  • The two sides reached a basic framework consensus on resolving TikTok-related concerns through cooperation, reducing investment barriers, and promoting economic and trade ties.
  • Li Chenggang, China's international trade representative, emphasized that China opposes the politicization, instrumentalization, and weaponization of trade issues and will not reach agreements at the expense of principles, corporate interests, or international fairness and justice.
  • The talks come at a time of global economic uncertainty, with the US having raised tariffs on a wide range of countries, undermining the WTO-centered multilateral trading system and dampening business and consumer confidence.
  • Analysts said that there are no winners in trade wars and no way out through protectionism, urging China and the US to strengthen dialogue, eliminate interference, and build trust to work toward a more stable and prosperous global economic order.

Statistics:

  • Since entering the US market, TikTok has built a large user base, winning popularity among Americans while contributing to jobs and consumption.
  • The company has faced sustained political headwinds, from Donald Trump's threats of a forced sale during his first presidential term to the Biden administration's "sell-or-ban" push and later extensions of the ban's grace period with demands for new controlling stakes.
  • Fortnightly trade tensions are affecting trade between the countries with total imports absorbing about 5.5 percent of the U.S.'s overall annual product and 5 percent of the U.S.'s total imports earning billions of dollars annually.

Sources:

  • "U.S., China hold economic, trade talks in Spain." Xinhua, 2025.
  • Li Chenggang, "China opposes the politicization, instrumentalization and weaponization of trade issues, will not reach agreements at the expense of principles." People's Daily, 2025.