US Threatens To Continue Banning TikTok If China Doesn't Stop Tariff And Technology Demands

US Treasury Secretary Scott Bessent (photo; x @SecScottBessent)

JAKARTA The United States will continue its plan to ban the short video application of TikTok if China does not stop its demands to reduce rates and technology restrictions as part of a divestment deal. This was said by a senior US official who was aware of the negotiation process on Monday, September 15.

The US and Chinese delegations are discussing TikTok's divestment of its Chinese owner Bytedance in a broader series of talks on rates and economic policies taking place in Madrid. TikTok is in danger of closing in the US from September 17 if it does not switch to US ownership.

US officials who do not wish to be named say that the Chinese delegation came to talks in Madrid with a wrong understanding of the US position on TikTok. US Treasury Secretary Scott Bessent and US Trade Representative Jamiesonmenwa, stated that China wants concessions in trade and technology in exchange for approving the divestment of the popular social media app.

"China's delegation comes with a very aggressive demand," Bessent said. "We will see if we can reach an agreement at this time. We are not willing to sacrifice national security for the sake of a social media app."

Negotiations between the US and China taking place at the Palacio de Santa Cruz belonging to the Spanish Ministry of Foreign Affairs are the fourth round in four months to address tensions in TikTok's trade relations and divestment deadlines. These talks took place amid Washington's pressure on its allies to impose tariffs on imports from China over China's purchase of Russian oil by China.

A spokesman for China's Ministry of Trade called the US action "a unilateral act of intimidation and economic coercion" in violation of consensus reached by US and Chinese heads of state in their phone calls, and could have a serious impact on global trade and supply chain stability.

Progress in Technical Details

Bessent said both sides had made good progress on technical details, but reaching an agreement on another issue would be a challenge. The extension of the TikTok divestment deadline will depend heavily on the outcome of Monday's talks.

"From a Chinese perspective, they view the TikTok deal as part of a wide range of issues, be it tariffs or other measures that have been taken over the years",tipsaid.

A spokesman for China's Ministry of Foreign Affairs, Lin Jian, said China had no new information regarding TikTok. "Regarding TikTok, China has repeatedly declared its position," he said at a press conference in Beijing.

Adding to tensions, China's market regulator on Monday stated that an initial investigation into Nvidia found that the US chip giant had violated China's anti-monopoly laws. This move is seen as in retaliation for US restrictions on China's chip sector.

Delegations led by Bessent and Chinese Deputy Prime Minister He Lifeng have met in European cities since May to resolve differences that have prompted US President Donald Trump to increase tariffs on Chinese imports, prompting countermeasures from China, including high tariffs on US goods and halting exports of raw materials to the US.

However, the Trump administration faces a possible decision by the US Supreme Court that could cancel tariffs on Chinese goods imposed this year, potentially weakening Trump's bargaining position over Beijing. This ruling is expected to come out in early 2026.

Low Expectations

Experts have low expectations of significant breakthroughs in Madrid. William Reinsch, senior trade adviser at Center for Strategic and International Studies, said there would be no substantial outcome unless there was a direct meeting between Trump and Chinese President Xi Jinping.

"Preparing for the meeting is the main goal of this talk," Reinsch said. Trump has repeatedly expressed interest in meeting Xi, but Reinsch said China will not agree to the meeting until they know the results and continue to push for easing US export controls on chips and other high-tech items.

Bessent added that although the TikTok divestment deal was not reached, relations at the highest level remained good. "We have great respect for all of our partners," he said.