Beijing may be buying itself room to negotiate on the matters it cares about most: tariffs, technology and Taiwan.

The United States and China are close to an agreement on social media platform TikTok but a deal could hinge on Chinese demands for trade concessions, U.S. Treasury Secretary Scott Bessent said on Monday as a second day of talks got underway in Madrid.

Bessent said details would be determined in a later meeting between President Trump and Chinese Premier Xi Jinping, who are expected to speak on Friday.

Top economic officials met in Madrid for a second day, with deadlines looming on tariffs and a ban on TikTok in the United States if it is not sold by its Chinese owner, ByteDance.

This mark the fourth time in four months that the delegations have met in European cities to try to keep a fractured U.S.-China trade relationship from collapsing under Trump's tariffs.

MADRID (Reuters) - The U.S. will go ahead with a ban on short-video app TikTok if China won’t drop demands for reducing tariffs and technological restrictions as part of a divestiture deal, a senior U.S. official with knowledge of negotiations said on Monday.

Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will meet early next week for another round of US-China talks. Both sides are searching for a path forward on a TikTok ban and a November tariff deadline.

China railed for years against the United States’s bid to force the sale of TikTok, once accusing Washington of demonstrating “robbers’ logic” in response to the platform’s success. Now, Beijing is touting talks on how the video-sharing platform’s Chinese owner, ByteDance, might relinquish ownership of its US operations.