Last Friday, the United States imposed 25 percent tariffs on $34 billion in Chinese products, and Beijing responded by hitting the same amount of USA imports.
"The outburst of large-scale mutual levying of tariffs between China and the United States will inevitably destroy Sino-US trade", Assistant Minister of Commerce Li Chenggang told a forum in Beijing. But China only bought about $135 billion in US goods previous year, meaning it will run out of American products to tax before it matches Trump's latest move.
US President Donald Trump ordered his government to prepare tariffs on a further US$200bn of imports from China on Monday.
For the full list, see the 205-page document. The official added that China has warned the US that future actions would be met with "economic attacks" on American markets.
He said the administration should get back to the negotiating table with China.
"At the same time, China will report the US' unilateral behaviour to the World Trade Organization", reports China News.
The new round of tariffs targets more than 6000 trade lines including a wide range of low-end manufactured products from handbags, textiles, tires, leather goods, ski gloves to refrigerators to TVs.
The tariffs will not be imposed until after a two-month period of public comment on the proposed list, but some US business groups and senior lawmakers were quick to criticize the move.
But Trump has said continuously that China has taken advantage of the U.S. economy, and he has vowed to hit almost all the country's products with tariffs, as much as $450 billion.
"Tariffs are taxes, plain and simple.
This new round of proposed tariffs takes the fight onto yet another level from which it is going to be hard for either side to make a graceful retreat", said Eswar Prasad, former head of the International Monteary Fund's China division.
"In the process of determining which [US] products should be subject to retaliatory tariffs, the Chinese side has fully considered substitution for imported goods and the overall impact on trade and investment", it says, referring to a faster rollout of various economic and investment incentives and continuing assessments of the trade war's impact on a range of sectors. Imposing taxes on another $200 billion worth of products will raise the costs of every day goods for American families, farmers, ranchers, workers, and job creators.
The Retail Industry Leaders Association (RILA) was quick to condemn the proposal, saying it will punish American consumers. "Consumers, businesses and the American jobs dependent on trade, are left in the crosshairs of an escalating global trade war", said Hun Quach, the head of worldwide trade policy for the group. It left untouched US -branded smartphones and laptop computers.
"In part because they have only limited ammunition and in part because it's still early in the process on the USA side", Mr Kuijs added.