Second Round of U.S.–China Trade Talks Begins in Spain Amid Rising Tensions Over Russia

International Desk | PNN:
The world’s two largest economies, the United States and China, are holding the second day of trade talks in Madrid, Spain. The meetings commenced on Monday at Santa Cruz Palace and will continue until Wednesday. On Sunday, the first day featured six hours of discussions.

The U.S. delegation is led by Treasury Secretary Scott Bessent, while China is represented by Vice Premier He Lifeng. Both sides aim to reduce the ongoing tariff war and reach a coordinated trade agreement.

A key issue in the discussions is China’s purchase of oil from Russia, which has angered Washington. Former U.S. President Donald Trump has urged European allies to impose tariffs of up to 100% on Chinese goods to pressure Moscow. Trump has already increased tariffs on Indian products by 50%.

Meanwhile, Chinese Foreign Minister Wang Yi cautioned that such sanctions would only complicate the Ukraine crisis further. At the same time, Beijing has launched two new investigations into the U.S. chip industry. The day before, the U.S. Department of Commerce added 23 more Chinese companies to its blacklist.

Analysts say that while there has been some progress in the talks, disputes over Russia and technology controls continue to make the future of U.S.–China relations uncertain.