China has lowered its expectations for progress on trade talks this week after the White House blacklisted a slew of Chinese tech companies over human rights violations, Reuters reported.

The tempered expectations came after the U.S. blacklisted 28 Chinese entities over alleged human rights violations against Muslim minorities in Xinjiang, while putting visa restrictions on Chinese officials involved, Reuters reported, citing Chinese government officials, diplomats and investors.

The White House did not immediately respond to CNBC's request for comment.

The report is similar to what Wall Street analysts have been telling CNBC could come out of the talks: a tariff postponement with an agreement to tackle the bigger issues again later.

Top trade negotiators are set to resume negotiations on Thursday in Washington. Earlier Wednesday, reports suggested China is open to a small deal as long as President Donald Trump doesn't impose more tariffs, while offering to increase annual purchases of U.S. agricultural products.

There's a lot riding on the outcome of these talks. The Trump administration has imposed tariffs on more than $500 billion of Chinese goods, with another round of tariffs set to go into effect later this month.