China has ordered the closure of the US consulate in the south-western city of Chengdu, in a tit-for-tat escalation between the two countries.
China said the move was a "necessary response" to the US, which ordered China to close its consulate in Houston earlier this week.
Secretary of State Mike Pompeo said the US decision was taken because China was "stealing" intellectual property.
China's move came hours after Mr Pompeo hardened his tone further in a speech on Thursday at the library of former President Richard Nixon, whose 1972 China visit heralded a period of improved relations.
China's foreign ministry said the closure was a "legitimate and necessary response to the unreasonable actions taken by the United States".
"The current situation between China and the United States is something China does not want to see, and the US bears all responsibility for that."
China gave the US till Monday to close the consulate in in Chengdu, according to the editor of China's Global Times.