China says it would "not yield" on major principles. (File)

China warned the United States on Thursday that it must show "sincerity" if trade talks are to continue between the world's top two economies, stressing that Beijing would "not yield" on major principles.

"If the US wants to continue to talk, it should show sincerity and correct its mistaken actions. Only on the basis of equality and respect can the negotiations have the chance of continuing," commerce ministry spokesman Gao Feng said at a press briefing.

China also said it has lodged a protest with the United States over its treatment of telecom giant Huawei and warned that Beijing has the ability to protect the rights of Chinese companies.