The US and China have are back on the negotiating table in an effort to deescalate their ongoing trade dispute. High ranking officials from both countries began talks on Wednesday in Washington, DC.

A 90-day truce in the trade war was declared in December and is set to expire in a month. The talks will take place against the backdrop of Washington's prosecution of Chinese telecom Huawei, which has drawn outrage in China and threatened the negotiation process.

On Monday, the US Justice Department announced two indictments against Huawei, accusing the firm of stealing trade secrets, fraud and obstruction of justice. Top Huawei executive Meng Wanzhou, who was arrested in Canada in December, has also been accused of violating US sanctions on Iran.

But US officials don't believe that this will hinder the trade negotiations. "Let me be clear. Those are separate issues," Treasury Secretary Mnuchin told US media ahead of the talks.

US Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He will lead the trade meetings, joined by White House economic advisor Larry Kudlow and Mnuchin.

If talks were to fail, US import tariffs on $200 billion (€174 billion) in Chinese imports would more than double, something that economists say could have a negative impact on the world economy.

US officials have accused China of unfair trade practices, as well as the alleged theft of American intellectual property through hacking.

President Donald Trump has said he favors a healthy Chinese economy, but not at the expense of American business and know-how.

Federal Reserve Chairman Jerome Powell told reporters on Wednesday that prolonged trade talks with China could hurt the US economy by damping business confidence.

"Uncertainty is not the friend of business," Powell said.