US Makes Progress on Tiktok Negotiations

The US has achieved a noteworthy breakthrough regarding Tiktok by focusing negotiations and persuading Beijing. Treasury Secretary Scott Bescent shared insights during an exclusive interview with Breitbart News after two days of discussions in Spain.

This proposed framework agreement is set to be finalized during a call between President Trump and Chinese leader Xi Jinping on Friday. It addresses Beijing’s intent to keep Tiktok under US control while maintaining “Kanji,” according to Bescent.

“The Chinese aimed to broaden the discussion into a much larger trade negotiation, but we kept our focus on Tiktok specifically,” he noted. “Without this deal, Tiktok’s situation would have worsened rapidly. They were genuinely caught off guard by that.”

Trump’s Leverage and Beijing’s Misstep

Bescent stated that this agreement was possible because Trump empowered negotiators to be decisive and had the backing to take significant steps regarding Tiktok.

“President Trump granted Jamieson Greer and me considerable authority,” said Bescent. “That clearly surprised them.”

Beijing officials entered talks in Madrid, mistakenly thinking Washington would avoid risking Tiktok’s closure, Bescent explained. Progress picked up speed once negotiators indicated that the administration was prepared to part ways.

Historically, China has shown little inclination to yield. Their willingness to accept that Tiktok’s parent company, Baitedan, must divest its US operations seems significant. Reports also indicate that Chinese regulators utilized antitrust laws against US chipmaker Nvidia during the discussions and provided political support to Xi to facilitate the negotiations.

Tiktok, Politics, and National Security Concerns

This agreement coincides with a looming deadline under which Tiktok must sell its US operations for national security reasons. This deadline has been extended multiple times, and Trump has noted Tiktok’s role in enhancing his appeal among younger voters ahead of the 2024 election.

According to reports, Beijing’s concessions seem linked to Trump’s campaign to secure a national visit. Trump confirmed his strong relations with Xi and announced his intention to speak with him at the week’s end.

However, the Tiktok framework leaves some larger issues unresolved. Bescent pointed out that the current 90-day suspension of tariffs is set to expire on November 10. There’s a strong likelihood that both parties will reconvene in Europe.

China appears interested in longer suspensions and mutual purchasing agreements. “Are we prepared to consider a longer tariff suspension, rather than just 90 days?” someone familiar with the issue stated, mentioning China’s desire for exemptions on a $30 billion purchase.

Bescent emphasized that the more significant challenge is structural. “They need to shift their economy towards domestic consumption,” he noted. “So far, there hasn’t been much indication of that happening.”

Bloomberg reported that interactions between Washington and Beijing have intensified ahead of a potential summit between Trump and Xi at the Asia-Pacific Economic Cooperation Forum in South Korea this autumn. Recently, Secretary of State Marco Rubio and Secretary of Defense Pete Hegses reached out to their Chinese counterparts.

Inside the Negotiation Room

Bescent expressed appreciation for Trump’s strategy of reinforcing his team and praised Greer’s extensive knowledge of trade policy in achieving this outcome.

“President Trump values the US and his trading team,” Bescent remarked. “We work well together. While I craft a framework, Jamieson is an expert. He often anticipates their positions before they even voice them.”

He described the discussions in Madrid as “respectful, thorough, and detailed,” stating that the atmosphere felt different from past US-China encounters. “These meetings show significant respect on both sides. They negotiate firmly but without rudeness,” he explained.

Global Implications

Bescent informed Breitbart that rising Chinese exports are affecting Europe, emphasizing that global demand is insufficient. The trade deficit with the US is projected to decrease by a third this year, thanks to Trump’s efforts.

Moreover, he pointed out that China’s support for Russia is complicating relationships further. “The Chinese back Russia. They will increase oil supplies and provide dual-use technology. If China ceased its support for Russia, the conflict could end in just a few weeks.”