He said on Twitter that a Wall Street Journal story on Wednesday about the talks invitation from Treasury Secretary Steven Mnuchin amid rising United States political pressure on Trump to ease up on trade fights "has it wrong".
News that US Treasury Secretary Steven Mnuchin had invited senior Chinese officials for talks comes just under a week after President Donald Trump threatened to impose tariffs on all Chinese imports worth US$500 billion. Our markets are surging, theirs are collapsing.
The United States and China have imposed tariffs on $50-billion of each other's goods since July as trade frictions between the world's two biggest economies worsened, despite several rounds of negotiations.
The majority of American companies in China say they are hurting from the escalating US-China trade spat, reporting increased costs, lower profits and stepped-up scrutiny, a survey showed Thursday.
"This survey affirms our concerns: tariffs are already negatively impacting USA companies and the imposition of a proposed $200-billion tranche will bring a lot more pain", said Eric Zheng, chairman of AmCham Shanghai.
Trump said last week that he also had tariffs on an additional $267 billion worth of goods ready "on short notice if I want".
Top White House economic advisor Larry Kudlow told Fox Business Network on Wednesday: "Secretary Mnuchin, who is the team leader with China, has apparently issued an invitation".
"If nearly a half of American companies anticipate a strong negative impact from the next round of USA tariffs, then the US administration will be hurting the companies it should be helping", he said.
About 30 per cent said they were adjusting supply chains by seeking to source components and/or assembly outside the US, and about the same number were seeking to source components and/or assembly outside China.
"I can't go beyond that", Kudlow told reporters outside the White House.
The last talks, between mid-level USA and Chinese officials on 22 and 23 August, failed to reach any agreement. "I believe both countries would not be willing to see such a situation", ministry spokesman Gao Feng said on Thursday.
The next wave of 25 per cent tariffs on a further $200 billion in imports will loom over any talks - after a public consultation period for affected businesses came to an end last Thursday.
Such a meeting could take place in Washington or Beijing, though the timing is unclear, according to informed sources.
Beijing has pledged to hit back with five to 25 per cent tariffs on $60 billion in U.S. imports in retaliation for any measures from the US.
A day earlier, more than 60 USA industry groups launched a coalition - Americans for Free Trade - to take the fight against the tariffs public.
The Global Times, published by the ruling Communist Party's People's Daily, cautioned against seeing the invitation from Washington as a sign that the Trump administration had softened its stance.