This is probably the shortest newsletter I have written. I just saw the Chinese side's press release on the Madrid talk. To me, it's quite positive that both sides reached a kind of basic framework consensus on TikTok. The key takeaway is that China has given a green light on the TikTok deal.
If I were to highlight the keyword from China's statement, I would choose "equality." Both He Lifeng and Li Chenggang stressed the equal political standing of the two countries in these negotiations, while also emphasizing the need for TikTok to engage in equal commercial negotiations, rejecting Trump's previous approach of forcing TikTok into a deal.
Vice Premier He Lifeng also noted
支持企业在符合市场原则基础上，与合作方开展平等商业谈判。
the Chinese government fully respects the intentions of our overseas enterprises and supports companies in conducting equal commercial negotiations with their partners based on market principles.
The timing suggests both sides are looking for an off-ramp before the situation escalates further. Not surprised by the result, especially considering FT’s report that China has formally invited Trump to Beijing. If such a bilateral meeting is really going to happen, there must be some sort of deliverable ready for the leaders to sign.
Results of China-US Madrid economic and trade talks released
Li Chenggang, China's Deputy Minister of Commerce and International Trade Representative, said on the 15th that over the past two days, China and the United States held talks in Madrid, Spain. Both sides actively implemented the important consensus reached during the phone call between the two heads of state, fully utilized the China-US economic and trade consultation mechanism, and engaged in candid, in-depth, and constructive communication on economic and trade issues of mutual concern, including TikTok, based on mutual respect and equal consultation.
Li Chenggang stated that regarding the TikTok issue, China has consistently opposed the politicization, instrumentalization, and weaponization of technology and economic-trade matters, and will never seek to reach any agreement at the expense of principled positions, corporate interests, and international fairness and justice. China will resolutely defend national interests and the legitimate rights and interests of Chinese-funded enterprises, and conduct technology export approvals in accordance with laws and regulations. At the same time, the Chinese government fully respects corporate intentions and supports enterprises in conducting equal commercial negotiations based on market principles.
Li Chenggang said that during these talks, both sides engaged in candid and in-depth exchanges regarding TikTok and related Chinese concerns, and reached a basic framework consensus on properly resolving TikTok-related issues through cooperation, reducing investment barriers, and promoting relevant economic and trade cooperation.
China-US talks on TikTok and other trade issues held in Madrid, Spain
From September 14-15 local time, He Lifeng, China's lead representative for economic and trade affairs and Vice Premier of the State Council, held talks in Madrid, Spain with his US counterparts - Treasury Secretary Bessent and Trade Representative Greer. Guided by the important consensus reached during the phone call between the two heads of state, both sides engaged in candid, in-depth, and constructive communication on economic and trade issues of mutual concern, and reached a basic framework consensus on properly resolving TikTok-related issues through cooperation, reducing investment barriers, and promoting relevant economic and trade cooperation. Both sides will consult on related outcome documents and fulfill their respective domestic approval procedures.
He Lifeng stated that China's determination to safeguard its legitimate rights and interests remains unwavering, and China will resolutely defend national interests and the legitimate rights and interests of overseas Chinese-funded enterprises. Regarding the TikTok issue, China will conduct technology export approvals in accordance with laws and regulations. At the same time, the Chinese government fully respects the intentions of our overseas enterprises and supports companies in conducting equal commercial negotiations with their partners based on market principles.
He Lifeng pointed out that the essence of China-US economic and trade relations is mutually beneficial and win-win, with both sides having broad space for cooperation and extensive common interests. When China and the US cooperate, both benefit; when they fight, both suffer. China hopes the US will work with China in the same direction, promptly remove relevant restrictive measures against China, and take concrete actions to jointly maintain the hard-won results of these talks, creating a favorable atmosphere for the stable and sustained development of China-US economic and trade relations.
Both sides agreed that stable China-US economic and trade relations are of great significance to both countries and have important implications for global economic stability and development. Both sides will continue to implement the important consensus from the phone call between the two heads of state and the outcomes of previous economic and trade talks, fully utilize the China-US economic and trade consultation mechanism, continuously build consensus, resolve differences, and strengthen cooperation to achieve more win-win results and promote the healthy, stable, and sustainable development of China-US economic and trade relations, injecting more stability into the world economy.
...and not a word about Rare Earth Minerals. My guess is that it came up in the discussions.