Bessent and Chinese Vice Premier He Lifeng opened the latest round of discussions in Madrid on Sunday, seeking to narrow differences on trade and technology that have strained relations between the world's two largest economies.

The meetings are expected to continue through Wednesday -- the deadline for TikTok to find a buyer or face a ban.

"On the TikTok deal itself, we're very close to resolving the issue," Bessent told reporters as he arrived at Spain's foreign ministry for a second day of talks.

"If we don't reach an agreement on TikTok, it doesn't affect the overall relationship between the two countries. It's still very good at the highest levels," he added.

TikTok is owned by China-based internet company ByteDance.

A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before US President Donald Trump's inauguration on January 20.

But the Republican, whose 2024 election campaign relied heavily on social media and who has said he is fond of TikTok, put the ban on pause.

In mid-June Trump extended a deadline for the popular video-sharing app by another 90 days to find a non-Chinese buyer or be banned in the United States.

That extension is due to expire on Wednesday.

While Trump had long supported a ban or divestment, he reversed his position and vowed to defend the platform -- which boasts almost two billion global users -- after coming to believe it helped him win young voters' support in the November election.

The talks in Madrid also cover Trump's threat of steep tariffs on Chinese imports.

Trade tensions escalated sharply earlier this year, with tit-for-tat tariffs reaching triple digits and snarling supply chains.

Both governments later agreed to lower the punitive tariffs, with the United States imposing 30 percent duties on imports of Chinese goods and China hitting US products with a 10 percent levy, but the temporary truce expires in November.