China has decided not to send its Vice Premier Liu He for the negotiations with the United States and has scrapped trade talks with the country due next week.
According to the sources cited by a newspaper, China was also not sending a mid-level delegation to the US ahead of Liu's planned visit.
The government of China has yet not made an announcement in this regard. The move however, is bound to ratchet up its tensions with the US.
Beijing and Washington are locked in a festering trade war with both sides hitting each other's goods with tariffs worth billions.
An additional 10 per cent import duties on $200 billion worth of Chinese products was earlier slapped by the US, which had warned Beijing of fresh taxes on another $267 billion in Chinese imports.
The latest tariffs and the threat however, did not deter Beijing from launching retaliatory tariffs on American goods worth $60 billion.
Both sides had earlier slapped additional tariffs of worth $50 billion on each other's products.