China stocks closed lower on Wednesday, after Washington and Beijing exchanged tough words and doused hopes of a trade deal. The blue-chip CSI300 index fell 0.8% to 3,870.98, while the Shanghai Composite Index shed 1.0% to 2,955.43.
US President Donald Trump delivered a stinging rebuke to China's trade practices on Tuesday at the United Nations General Assembly, saying he would not accept a "bad deal" in US-China trade negotiations.
China's top diplomat hit back at US criticism on Tuesday, saying Beijing had no intention to "play the Game of Thrones on the world stage" and would respect US interests, but it would not be threatened on trade or allow interference in its affairs, including Hong Kong.
The A-share market still faced the risk of Sino-US trade tensions further escalating, while lack of fresh news on policy easing also curbed investor sentiment in the short-term, Wanlian Securities said in a report.
A recent raft of weak economic data would be a major drag on further gains, as the stabilizing of the economy should serve as the foundation for any extended market rally, the brokerage added.
Huawei suppliers were particularly hard hit for the day, after US lawmakers proposed funds to replace its equipment.
A US House panel unveiled bipartisan legislation this week that would authorize $1 billion for small and rural wireless providers to replace network equipment from companies including Huawei Technologies Co Ltd and ZTE Corp
that lawmakers say pose a national security risk.
Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.9%, while Japan's Nikkei index closed down 0.36%.
At 0720 GMT, the yuan was quoted at 7.1191 per dollar, 0.04% weaker than the previous close of 7.116.
The largest percentage gainers in the main Shanghai Composite index were Jiangsu Hongtu High Technology Co Ltd, up 10.15%, followed by Chengdu Xuguang Electronics Co Ltd, gaining 10.04% and Jiangsu Highhope International Group Corp, up by 10.02%.
The largest percentage losers in the Shanghai index were Beijing Airport High-Tech Park Co Ltd down 10.01%, followed by Beken Corp losing 10% and Grace Fabric Technology Co Ltd down by 10%.
As of 0721 GMT, China's A-shares were trading at a premium of 30.99% over the Hong Kong-listed H-shares.