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A US government delegation will visit China next week for the first face-to-face talks since US President Donald Trump and his Chinese counterpart Xi Jinping agreed on a temporary truce in the trade war, Beijing has confirmed.

It said the American delegation will be led by the deputy US trade representative, Jeffrey Gerrish, but offered no other details. US officials have said that if the talks fail to produce a satisfactory agreement Washington will increase tariffs on $200 billion of Chinese goods from 10 percent to 25 percent.

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 US charges related to possible violations of trade sanctions on Iran.

That agreement saw China commit to renewed purchases of USA agricultural goods like soybeans, in return for the delay of a fresh swathe of tariffs Washington was set to impose on Chinese goods.

"We have a massive trade negotiation going on with China".

Trump initiated the trade war because of complaints over unfair Chinese trade practices - concerns shared by the European Union, Japan and others.

Other administration officials at the talks will include Mr Gregg Doud, the US Trade Representative's chief agricultural negotiator, and Mr David Malpass, the Treasury Department's Undersecretary for International Affairs, said the sources.

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The presidents of China and the USA have exchanged messages vowing to boost cooperation despite a bruising trade war on the 40th anniversary of the countries' diplomatic relations, Chinese state media reported.

The country´s manufacturing sector has also been hit by the trade dispute, contracting last month for the first time in over two years, according to official data. The shares closed at US$148.26 on Friday, down about 5.1 percent for the week.

USA trade negotiators will "optimistically and constructively communicate with (the) Chinese delegation on the important agreements achieved by the two leaders during the meeting in Argentina", China's Commerce Ministry said in a statement, without giving further details.

The dispute has rattled companies and financial markets that worry it will drag on global economic growth, already showing signs of declining.

United States envoys are to visit Beijing on Monday for talks on resolving a tariff dispute that threatens to hobble global economic growth, Beijing said yesterday.

For their part, Chinese officials are unhappy with US curbs on exports of "dual use" technology with possible military applications. An escalating trade war would make the situation even worse.