The drop in the PMI, a key indicator of manufacturing health in the world's second-largest economy, came as Trump's administration proposed a 25 percent tariff on another $200 billion in Chinese goods, up from an earlier 10 percent plan.
This is down nearly 16 percent from the June peak, a period that coincides with the ramping up of tariffs by the United States, coupled with increasingly bellicose rhetoric.
Geng also said that China has "always upheld using dialogue and consultations to handle trade frictions", but that "unilateral threats and pressure will only produce the opposite of the desired result".
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A first round of tariffs came into effect on 6 July, when the U.S. imposed 25% taxes on $34bn of Chinese imports.
"The impact is huge: almost half of the imports from German companies are directly or indirectly affected by the new tariffs, for example because they source raw materials or components from the other country".
Weeks after the White House said it wanted to slap 10% tariffs on an additional $200 billion worth of Chinese imports, President Donald Trump's advisors are reportedly urging him to make it 25% instead.
The bill has started to mount, with the USA government dipping into its coffers to find $12 billion to aid farmers who have been hit by Chinese retaliation.
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Slapping additional tariffs on Chinese imports - 60 per cent of which are made by foreign firms, including American companies - will only raise costs for domestic United States consumers, said Chinese Foreign Minister Wang Yi.
Benchmark U.S. government bond yields edged lower on Thursday as investors sought safe-haven debt while the dollar .DXY rose against a basket of currencies.
Trump initially threatened to levy 10 percent on an additional $200 billion but that figure may now rise to 25 percent, sources told the Washington Post and Bloomberg. But Chinese Foreign Ministry spokesman Geng Shuang reiterated at a regular news briefing that the United States' efforts at "blackmail" would fail. Since then there have been no meaningful contacts between the two sides. "We would advise the United States to correct its attitude and not try to engage in blackmail".
"This won't work on China", Geng said, adding that the Trump administration should "not blindly let emotions affect their decisions, because in the end this will harm themselves".
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