US and Chinese officials have wrapped up a second day of economic negotiations in Spain's capital, reaching a preliminary framework on TikTok's US operations while navigating persistent disputes over tariffs and technology restrictions.

The high-level discussions, hosted at Spain's Foreign Ministry in the Palacio de Santa Cruz, involved US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer meeting with Chinese Vice Premier He Lifeng and negotiator Li Chenggang. After six hours on Sunday and further sessions Monday, Bessent confirmed the sides are "very close" to finalizing a TikTok deal, potentially averting a September 17 ban on the app owned by ByteDance.

Trump, posting on Truth Social, called the talks "VERY WELL" and hinted at a resolution for the platform popular with young Americans, adding he would speak with Xi on Friday.

The framework aims to address US national security concerns by shifting TikTok to American ownership, possibly through a short deadline extension – the fourth since Trump's initial push. This follows a July Stockholm agreement that paused triple-digit retaliatory tariffs at 55 percent until November 10, restarting rare-earth exports crucial for US tech and defense.

However, progress on broader issues remains limited: China announced Sunday an antitrust probe into Nvidia for alleged dumping and discrimination, after US chip exports to China surged 37 percent while prices dropped 57 percent since 2022. Beijing's commerce ministry labeled US export controls "containment and suppression" of its high-tech ambitions, including AI and semiconductors.

The talks also touched on cooperation against money laundering and fentanyl precursors, as well as Washington's call for allies to tariff Chinese goods over Beijing's Russian oil buys. Experts like William Reinsch of the Center for Strategic and International Studies noted low expectations for major breakthroughs, viewing the meetings as groundwork for a potential Trump-Xi summit. China's Foreign Ministry stressed "mutual respect and equal consultations," while a Treasury statement highlighted shared interests in economic stability.

For China, exports to the US fell 15 percent this year, but trade with Southeast Asia and Africa has boomed, pushing toward a record $1 trillion surplus. The US seeks to curb Beijing's state-subsidized exports and boost domestic consumption, a shift that could take years. No joint press conference materialized, but Bessent indicated relations remain strong at the highest levels despite frictions.

As the fragile truce nears its November end, the TikTok outline offers a tentative win, but unresolved tech and tariff hurdles underscore the economic interdependence – and rivalry – defining the world's two largest economies.