The talks, part of a busy week of trade negotiations and tight deadlines, have become enmeshed in political intrigue after an adviser to President Donald Trump, who is considered a hardliner on China, was left out.
China's Vice-Premier Liu He leads the trade delegation from Beijing.
Liu He said during his meetings in Washington with former U.S. Secretary of State Henry Kissinger as well as current U.S. lawmakers that healthy Sino-U.S. relations are in line with the interests of both countries and that Beijing and Washington should properly handle the trade dispute with mutual respect and aim for mutually beneficial outcomes, according to Xinhua.
Navarro and Mnuchin had an angry exchange on the Beijing trip and ties were so strained some participants openly wondered how they would get along on the same plane on the long U.S. Navarro also anxious that Mnuchin is leading the administration down the wrong path on trade with China, said the source briefed on the trip.
The U.S. congressmen said that formal talks with the administration were due to begin on Thursday.
ZTE's seven-year US business ban, ordered last month, led the company to say it was ceasing operations because it can not get the parts it needs for manufacturing telecommunications equipment and smart phones.
Tencent advances revenues 48%, profit over 60% in Q1
The company is investing in cloud computing, online entertainment and physical retail stores as it locks horns with Alibaba Group. Tencent has a hand in the two biggest games in the smartphone world today: Player Unknown Battlegrounds (PUBG) and Fortnite .
"Nothing has happened with ZTE except as it pertains to the larger trade deal", Mr Trump said on Twitter.
"We have not seen China's demands yet, which should be few in that previous U.S. Administrations have done so poorly in negotiating", Trump said.
The lawmakers said the meeting did not address Trump's pledge on Sunday to help Chinese telecommunications equipment maker ZTE Corp (000063.SZ) get back in business after a Commerce Department ban cut off its supply of US components.
The president surprised many in Washington over the weekend by saying he's working with Xi to help ZTE "get back into business, fast". The U.S. has very little to give, because it has given so much over the years. After the USA unveiled a list of $50 billion in potential tariffs on Chinese products, Beijing responded with plans to implement billions of dollars in reciprocal penalties on US soybeans, cars and other items.
Trump has threatened to expand the list of targeted Chinese goods to $150 billion - which potentially could cover everything the United States imports from China, since those imports totaled $130 billion past year. However, the administration has not publicly stated a time frame for when it will make its final decision.
Ahead of the meetings, Liu, who is China's top economic official, told us lawmakers on Wednesday that he would work hard to address the U.S. Additionally, lawmakers took the Chinese to task for alleged transfers of USA intellectual property to Chinese firms. "I think that's going to be a wake-up call for Americans", Navarro said on NBC's "Meet The Press".