BEIJING — Efforts to end a U.S.-China trade war are in shambles after the United States accused China of reneging on its commitments and prepared to raise import taxes on $200 billion worth of Chinese goods.

A Chinese delegation is headed to Washington to salvage talks aimed at resolving a dispute over China's aggressive push to challenge American technological dominance. Negotiations are set to resume Thursday.

The setback in negotiations caught financial markets by surprise, and the U.S. stocks fell Tuesday for the second straight day. For weeks, Trump administration officials had suggested that negotiators were making progress.

China confirmed Tuesday its economy czar, Vice Premier Liu He, will lead China's delegation, ending speculation that he'd skip the talks or that China would back out altogether.

The announcement suggests President Xi Jinping's government is putting its desire to end a conflict that has battered Chinese exporters ahead of the political need to look tough in the face of U.S. pressure.

The decision to have Liu take part in talks might keep alive hopes the two biggest global economies could make peace as early as this week.

The Trump administration is pressing Beijing to roll back plans for government-led development of Chinese global competitors in robotics, electric cars and other technologies. Washington, Europe, Japan and other trading partners say those violate China's market-opening commitments and are based in part on stolen technology.

Washington and Beijing have raised tariffs on billions of dollars of each other's exports.