TikTok Talks in Madrid Signal U.S. Push to Counter China’s Rare Earth Leverage

MADRID — Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and Commerce Minister Li Chenggang in Madrid last week and announced a framework agreement over TikTok, the Chinese-owned video app used by millions of Americans.

The talks were framed as part of a broader U.S. strategy to use TikTok as a negotiating lever in U.S.-China discussions, linking governance and security measures for the platform with wider trade and technology policy. The framework is described by participants as a preliminary scaffold rather than a final deal, intended to address data security, user privacy and potential Chinese influence on the platform while signaling how technology policy may intersect with economic diplomacy.

Beyond TikTok itself, officials emphasized that Beijing's leverage extends to rare earths, critical minerals and semiconductors, an area where Washington says supply-chain resilience is at risk due to China's dominant role.

Industry data underscore the scale of the challenge: China accounts for roughly 70% of global rare earth mining and about 90% of refining capacity. In 2023, the country controlled about 61% of global mining of rare earth magnets and 92% of refining capacity for those magnets, illustrating the chokepoints that have become focal points in trade talks.

These material chokepoints are complemented by China’s broader state-led push to become self-sufficient in mature-node semiconductor production and related classes of components. While U.S. chip design and advanced research remain strong, analysts note that China’s share of value-added in semiconductors has grown in the past two decades, and Beijing has used export controls and licensing to shape supply chains as a bargaining tool in negotiations.

In April 2025, China expanded export licenses and restrictions for seven heavy rare earth elements—including dysprosium, terbium and samarium—as well as rare earth magnets, intensifying pressure on sectors ranging from electric vehicles to defense electronics. The moves illustrate how China has shifted from tariffs and IP concerns to wielding choke points that can alter global production and pricing.

Officials in Madrid indicated that the TikTok framework is intended to support broader negotiations on how data, ownership and platform governance intersect with national security, while preserving Americans’ access to the app. Observers caution that the framework is a starting point rather than a final settlement, and that concrete concessions on data practices and supply chains will require extensive follow-up.

The Madrid talks occurred as part of a wider diplomatic cadence surrounding U.S.-China relations, including recent high-level exchanges and a Trump–Xi call described by participants as an opportunity to set a more substantive course. Washington has long argued that strategic diplomacy must couple disciplined red lines with practical tools to diversify supply chains and reduce vulnerability to Beijing’s policy maneuvers.

Analysts say the episode underscores a broader trend: technology policy is increasingly embedded in geopolitical strategy. By tying platform governance and data safeguards to leverage over rare earths and semiconductors, U.S. officials appear to be signaling that trade negotiations and national-security concerns can be pursued in tandem rather than in separate channels.

Looking ahead, officials cautioned that the framework’s success will depend on concrete guardrails around data access, algorithmic transparency and cross-border data flows, as well as verifiable commitments from Chinese partners on sensitive minerals and advanced manufacturing capabilities. While the framework signals intent, the road to a durable agreement remains uncertain, and further rounds of negotiation are anticipated as both sides weigh the implications for consumers, industry and national security.