American envoys are due in Beijing for talks Monday in a tariff battle over Chinese technology ambitions.
At a summit in Argentina late past year, US President Donald Trump and Chinese President Xi Jinping agreed to a ceasefire, deciding to hold off on imposing more tariffs for 90 days starting December 1 while they attempt to negotiate a deal.
The US delegation is to be led by US Deputy Trade Representative Jeffrey Gerrish, it said without giving other details about the agenda or participants. United States president Donald Trump has threatened a sharp hike in U.S. tariffs on Chinese goods if China didn't yield to his requests.
The talks are going ahead despite tension over the arrest of a Chinese tech executive - Huawei's chief financial officer, Meng Wanzhou - in Canada on USA charges related to possible violations of trade sanctions on Iran.
"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. until we get a deal with China", Hassett said on CNN.
Trump initiated the trade war because of complaints over unfair Chinese trade practices - concerns shared by the European Union, Japan and others.
Huawei staff punished after official tweet posted 'via iPhone'
The Chinese company, which competes with other smartphone giants such as Samsung and Apple, posted a tweet on one of its accounts. Huawei only sent out a memo which attributed the issue to " procedural incompliance and management oversight ".
In a separate statement on Friday, USTR said the delegation will also include Under Secretaries from the US Departments of Agriculture, Commerce, Energy and Treasury, as well as senior officials from those agencies and the White House.
U.S. President Donald Trump has again expressed confidence that he can put an end to the trade war with China which is jolting the global economy. "China wants the trade war to end, and they are offering signs of that", said a USA source familiar with the discussions. The shares closed at US$148.26 on Friday, down about 5.1 percent for the week. The two sides will discuss how to implement consensus reached by leaders of both countries in Argentina, it said.
The spat has rattled companies and financial markets that worry it would drag on global economic growth that is showing signs of slowing.
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 USA companies will have the same problem unless a deal is struck to lift tariffs imposed by both sides a year ago. They complain China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.
Despite the December truce, "most firms expect trade war to escalate", the report said.