So much for being "on hold".
In addition, by the end of June, the United States will announce investment restrictions and "enhanced export controls" for Chinese individuals and entities "related to the acquisition of industrially significant technology", it said.
US Commerce Secretary Wilbur Ross, arrives in Beijing on June 2 for further trade talks, and the latest statement is seen as a pressure tactic.
The move signals a move back to offense on China's CM2025 project.
Analysts in the United States suggested the newly confrontational stance also might be aimed at appeasing congressional critics of a deal the Trump administration made Friday that allowed Chinese telecom giant ZTE Corp.to stay in business.
The Trump administration has already won a WTO trade dispute with China in February.
The moves come after the Chinese government and Trump administration officials agreed to the outline of a trade truce earlier this month.
Like Trump's promise to kill the Iran nuclear deal, it looks like Trump is also making good on his election-year pledge to address the trade deficit with China.
But earlier this month, Trump made ZTE a critical part of a broader discussions regarding an impending trade war between China and the U.S., the two largest economies in the world.
China's Ministry of Commerce said yesterday that the U.S. statement is contrary to the consensuses the two sides previously reached in Washington. We will consider restrictions on foreign STEM students from designated countries to ensure that intellectual property is not transferred to our competitors, while acknowledging the importance of recruiting the most advanced technical workforce to the United States.
The White House emphasized the president's repeated emphasis on "reciprocal" trade treatment. Trump is using trade negotiations to recoup the losses.
It was not clear if the developments would have any impact on the planned visit to China by Ross.
"The fact that he is going over to China is a signal that the president has some confidence in him". But Mnuchin, a former Wall Street banker, is said to oppose draconian limits - just one indication of the divisions within Trump's team. "You would not send him if you were expecting real progress".
In a weird way, though, Ross may have an edge in these negotiations.
"Congressman Matt Gaetz commended Trump for taking action against China's ruthless and unfair trade practices, as well as its state-sponsored theft of American innovators" intellectual property (IP).
The trade spat between the top two economies of the world began last month with President Donald Trump imposing tariffs on steel and aluminum imports into US.