Madrid Meeting, Big Agenda

Senior US and Chinese officials met in Madrid to discuss trade irritants, a looming TikTok divestment deadline, and chip controls. The sit-down aimed to prevent fresh escalation even as both sides harden positions at home.

Where They Clash

Washington’s tariff regime and export curbs collide with Beijing’s industrial policies and “self-reliance” push. The fentanyl dispute and rare-earth access add friction, complicating any roadmap beyond narrow, technical deals.

Even modest confidence-building steps—like improved data sharing or clearer licensing timelines—can calm currency and equities jitters. Conversely, failure risks new retaliations that hit supply chains from smartphones to solar.

Officials signaled more working-level contacts in the run-up to October’s multilateral gatherings. Whether leaders meet soon remains uncertain, but both sides appear intent on keeping channels open.