The future of TikTok in the US and regulatory pressure on Nvidia in China became central talking points in the ongoing negotiations between Washington and Beijing this week.
Treasury Secretary Scott Bessent said President Donald Trump’s willingness to let TikTok go dark was a decisive factor in shaping a framework agreement with China.
At the same time, China’s ruling against Nvidia over a 2020 acquisition surfaced during the Madrid round of trade discussions, underscoring how technology and national security concerns continue to dominate economic diplomacy.
Both developments are now shaping expectations ahead of Trump’s scheduled call with Chinese President Xi Jinping on Friday.
TikTok deal deadline set for 17 September
ByteDance, the parent company of TikTok, still faces a 17 September deadline to divest its US operations or risk being shut down.
While the Trump administration has not formally extended the deadline, US Trade Representative Jamieson Greer suggested on Monday that additional time may be required for finalising and signing the deal.
Bessent explained in an interview with CNBC that commercial terms between ByteDance and prospective investors had been agreed “in essence” as early as March or April.
However, China temporarily paused progress following Trump’s announcement of sweeping tariffs on 2 April.
According to Bessent, the US side made clear during negotiations that national security concerns would not be compromised in favour of commercial gains.
Bessent said Trump had been prepared to accept a TikTok blackout in the US.
He indicated that this readiness was the turning point in discussions, pushing China towards the current agreement.
Final terms are expected to be resolved when Trump and Xi speak at the end of the week.
Nvidia ruling surfaces during Madrid talks
During the same interview, Bessent also disclosed that US negotiators expressed disappointment when China’s State Administration for Market Regulation ruled against Nvidia Corp. over its $6.9 billion acquisition of Mellanox Technologies in 2020.
The announcement, which declared Nvidia in violation of anti-monopoly laws, came through while negotiators were in Madrid.
Bessent said it was not initially clear whether the Chinese delegation was aware of the ruling.
He added that although the timing was disruptive, the decision had no direct link to the progress or outcome of the ongoing trade talks.
Nvidia, which acquired Mellanox to strengthen its position in the high-performance computing and networking markets, said it complies with the law “in all respects.”
The Chinese regulator’s decision added a layer of tension to discussions already dominated by digital platforms and technology access.
Trump and Xi to finalise framework this week
The culmination of these developments now rests on the scheduled call between Trump and Xi on Friday.
According to Bessent, the two leaders are expected to sign off on the framework deal, bringing clarity to an issue that has unsettled investors and users for months.
The White House has signalled that the deal includes provisions to limit risks associated with Chinese ownership, while Beijing has sought assurances that commercial conditions will not undermine its companies.
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