Beijing has said it will impose retaliatory tariffs on a raft of US products.
The counter measures include a 15% tax on coal and liquefied natural gas imports from the US.
Crude oil, agricultural machinery, pickup trucks and large-engine cars will face a 10% tariff.
The announcement came shortly after Donald Trump’s new 10% tariffs on China came into effect.
In a statement announcing the retaliatory tariffs, China accused the Trump administration of breaking international trade rules.
“The US’s unilateral imposition of tariffs seriously violates the rules of the World Trade Organization. It is not only unhelpful in solving its own problems, but also undermines the normal economic and trade cooperation between China and the US.”
China’s announcement signals Beijing’s willingness to adopt a tit-for-tat response to US tariffs, surprising some observers.
However, unlike the tariffs imposed by the US, which target all Chinese goods, China’s import taxes will target only certain types of products.
Meanwhile, China’s competition watchdog says it has launched an investigation into Google.
The State Administration for Market Regulation says Google is suspected of violating anti-monopoly laws.
Although Google’s search services have been blocked in China since 2010, it still has some business activities in China.
For example it still provides apps and games to the Chinese market through partnership with local developers.