Mnuchin had said on Saturday the USA wanted China to agree to structural change to its economy.
China would abandon its commitment to buy more American goods if Trump's plan to impose tariffs on $50 billion of Chinese exports went ahead.
But he added: "There was limited discussion on restricting technology transfer or imposing tariffs on Chinese imports related to the 301 trade case [into alleged unfair practices]".
The Trump administration also said it would impose curbs on Chinese investment and purchases of USA technology, as well as visas for Chinese students.
The warning came after delegations led by US Secretary of Commerce Wilbur Ross and China's top economic official, Vice Premier Liu He (劉鶴), wrapped up a meeting on Beijing's pledge to narrow its trade surplus. "All economic and trade outcomes of the talks will not take effect if the US imposes any trade sanctions including raising tariffs".
Ross had a working dinner Saturday evening with Liu, also at the same guesthouse in Beijing.
"It is important that China should directly talk with Lighthizer".
China also said it won't be pushed into making major changes to its economic policies. One thing Daniel Ikenson wrote at Cato last week was China would probably do okay in a trade war because their government would just keep propping up business.
"Don't blame Trump. Blame China, blame Europe, blame NAFTA".
"If the U.S. rolls out trade measures including tariffs, all the agreements reached in the negotiations won't take effect", state-run Xinhua News Agency reported yesterday, citing a statement from the Chinese team that met with a usa delegation led by Commerce Secretary Wilbur Ross.
On Monday the US President issued a series of tweets defending his stance, insisting the US could only win and promising to bring down barriers for US farmers and businesses.
He said the 25 per cent tariff on Canadian steel destined to the largest export market is a "dire situation".
The American Embassy in Beijing didn't immediately respond to a request for comment.
China wanted the United States to meet it half way, Xinhua said.
But Beijing warned all the results were premised on "not fighting a trade war".
On Saturday, Washington's main allies delivered a unified message of shock and dismay at a Group of Seven ministerial meeting, urging President Donald Trump to rescind the punishing metal tariffs.
"It would increase leverage and undercut the retaliatory risk to American companies", he said.
"By taking measures that violate G7 and World Trade Organization rules, the United States is actually benefiting China".
Britain's trade minister Liam Fox warned parliament on Monday that growing protectionism could "ramp up into a global trading disaster" and said Britain and the European Union's response must be measured and proportionate.
China announced last week it was cutting tariffs on a range of foreign consumer items, including clothes, home appliances, seafood and healthcare goods from July 1.
Mexico is levying import taxes on US exports of various steels and food products, including pork bellies, blueberries, apples, grapes and cheeses.