On Monday, the USA introduced new 10% tariffs on $US200 billion worth of Chinese imports.
Chinese products hit with fresh United States duties include everything from vacuum cleaners to internet-enabled devices, while USA goods targeted by China include liquefied natural gas and certain types of aircraft.
Earlier this month, President Donald Trump threatened more tariffs on Chinese goods - another $267 billion worth of duties that would cover virtually all the goods China imports to the United States.
Meanwhile, $US110 billion of goods from the US will become subject to Chinese retaliatory tariffs around the same time.
But Beijing also said it was willing to restart trade negotiations with the United States if the talks are "based on mutual respect and equality", Xinhua said, citing a white paper on the dispute published by China's State Council.
The report by the Chinese government said: "It has brazenly preached unilateralism, protectionism and economic hegemony, making false accusations against many countries and regions, particularly China".
Relations between Washington and Beijing are already strained as the two economic superpowers slap each other with a new round of trade tariffs.
"The trade war is now a reality", Fitch chief economist Brian Coulton said in the release.
The latest batch of Chinese imports to be hit will face 10 percent tariffs through the end of the year, and then the rate will jump to 25 percent. It had previously warned Washington against selling weapons to Taiwan and establishing military relations with the island, and remains locked in a trade war with the US.
Separately on Monday, Australian investment bank Macquarie said that Mexico stands to benefit the most from rising trade tensions between the United States and China.
Among the USA items expected to be hardest hit, according to an analysis from the Trade News Centre, are printed circuit boards, desktop computers, computer parts and metal and wooden furniture.
Rivals and allies, including India, China, Russia, Japan, Turkey and the European Union, have all dismissed that claim, regarding the USA tariffs as "safeguards" under the WTO rules, entitling them to a combined $3.5 billion in annual compensation.
China's top diplomat State Councillor Wang Yi had a similar message when he spoke to U.S. business leaders in NY.
Hopes for talks to resolve the issue appeared to have been dealt a blow as The Wall Street Journal reported Beijing cancelled the visit of a negotiating team expected September 27-28 in Washington.
It accused the United States of contradicting itself on trade policy and called for cooperation.
However, he added that given the current divide between the two sides, the risk of a trade war is "rising". That comes just weeks after tech giant Apple unveiled its new product line, which includes an updated smartwatch that has drummed up consumer interest.