Customs standstill at U.S.-China locations in Madrid: tariff conflict, TikTok accord stalled
The much-anticipated talks between the United States and China in Madrid failed to bring relief in the ongoing trade war between the two economic giants. Despite constructive discussions and open communication, no breakthrough was made regarding tariffs, and the conflict remains as entrenched as ever.
The main goal of the talks was to make progress in the stalled trade relations before the expiry of the tariff truce on November 10. However, the current tariffs on Chinese exports to the USA remain at around 50%, with certain US products facing up to 125% tariffs on the Chinese side.
The discussions covered a wide range of topics, including export controls, Russian oil, fentanyl smuggling, and money laundering. However, no progress was made in these areas either. The USA pressed for evidence of changes in Beijing's trade practices and cited the nearly $1 trillion trade deficit with the United States this year.
On the issue of export controls, the USA maintained bans on high-end chips, and China threatened restrictions on rare earths. No progress was made on these issues, and the search results do not provide information on the role of EU government representatives in negotiations on tariff issues between China and the United States in Madrid.
The USA and China held the fourth round of talks since May, with the US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer present, alongside Vice Premier He Lifeng and Vice Minister Li Chenggang from China.
The Chinese side criticized tariffs as a political tool and responded to American sanctions with new investigations against US semiconductors. The conflict over TikTok goes beyond the app, involving trust in digital infrastructure and states' control over technology.
Only the dispute over TikTok has a framework in place to prevent immediate escalation. The temporary truce reduced these rates to 30% and 10%, but this arrangement is set to expire in November. Observers expect an extension of the tariff truce to avoid escalation ahead of the holiday season.
The Madrid meeting was primarily viewed as a tactical move, not the start of a lasting solution. The only tangible result of the talks was a technical framework for a TikTok deal. The European Union is closely watching the development of the TikTok dispute, as bilateral agreements between Washington and Peking have immediate implications for supply chains and market rules.
The talks in Madrid marked yet another disappointing chapter in the US-China trade war, with both sides remaining at an impasse. It remains to be seen whether the two superpowers can find a way to resolve their differences and restore balance to their trade relations.
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