American envoys are due in Beijing for talks Monday in a tariff battle over Chinese technology ambitions.
President Trump and President Xi agreed to a ceasefire at a summit in Argentina in 2018, putting on hold any additional tariffs for 90 days from December the 1, while the two attempt to negotiate a deal.
A team led by Deputy U.S. Trade Representative Jeffrey Gerrish will travel to China for talks, China's commerce ministry and USTR said. Its one-sentence announcement gave no other details of the agenda or who else would take part.
China and the United States have been engaged in a trade war since Trump announced in June that $50 billion worth of Chinese goods would be subject to 25 percent tariffs in a bid to fix the US-Chinese trade deficit.
USTR said the U.S. delegation would also include under secretaries from the U.S. Departments of Agriculture, Commerce, Energy and Treasury, as well as senior officials from those agencies and the White House.
China's economy is slowing.
Huawei demotes employees for tweeting from iPhone
Two employees have also been demoted by one rank and their monthly salaries have been reduced by as much as 5,000 yuan (~$700). This was in addition to freezing the pay of Huawei's digital marketing director's pay for 12 months, the news outlet said .
"The negotiations next week are important because they will establish expectations, but we shouldn't expect major breakthroughs", said Mr Myron Brilliant, vice-president of global affairs at the US Chamber of Commerce. "I think that there are a heck of a lot of USA companies that have a lot of sales in China that are basically going to be watching their earnings be downgraded next year until we get a deal with China". There are fears of both sides hiking tariffs if no deal is reached. It was the fourth month of contraction, and it put annual sales in the world's biggest auto market on track to contract for the first time in three decades.
"It's not going to be just Apple", Hassett, the chairman of the Council of Economic Advisers, said.
White House Council of Economic Advisers chairman Kevin Hassett said in an interview with CNN's Poppy Harlow on Thursday that "a heck of a lot" of U.S. companies will have the same problem unless a deal is struck to lift tariffs imposed by both sides previous year. They criticize his tactics but echo USA complaints about Chinese industrial policy and market barriers.
Chinese officials are unhappy with United States curbs on exports of "dual use" technology with possible military applications.
Since the Xi-Trump meeting, China has adopted several goodwill measures including cutting tariffs on vehicles imported from the USA, resuming the purchase of soya beans from the country and submitting a draft law to prohibit forced technology transfers.
Despite the December truce, "most firms expect trade war to escalate", the report said.