In a statement China’s foreign ministry has warned it would take “firm counter measures” against Washington if the US continued “going down the wrong path”.
Mr Trump signed into law legislation which supported the protesters despite angry objections from Beijing.
The congressional law threatens sanctions for human rights violations.
It also requires the state department to certify that Hong Kong is autonomous enough to justify favourable US trading terms that have helped the territory grow as a world financial centre.
The increase in tensions comes amid a stand-off in trade talks between China and the US.
The US President justified the decision by stating the law was signed “out of respect for President Xi, China, and the people of Hong Kong”.
The law states: “Hong Kong is part of China but has a largely separate legal and economic system.
“The [annual review] shall assess whether China has eroded Hong Kong’s civil liberties and rule of law as protected by Hong Kong’s Basic Law.”
However Beijing fired back and accused Washington of “distorting truth” and threatening social order.
China’s foreign ministry added: “The US has been disregarding facts and distorting truth.
“It openly backed violent criminals who rampantly smashed facilities, set fire, assaulted innocent civilians, trampled on the rule of law, and jeopardised social order.”
Chinese Vice Foreign Minister Le Yucheng also summoned US Ambassador Terry Branstad for talks and demanded Washington immediately stop interfering in China’s domestic affairs and stop causing further damage to bilateral relations.
Hong Kong’s Beijing-backed government said the legislation sent the wrong signal to demonstrators and “clearly interfered” with the city’s internal affairs.
Anti-government protests have rocked the former British colony for the past six months.
More than 5,800 people have been arrested since the unrest broke out in June over a proposal to allow extraditions to mainland China, the numbers increasing exponentially in October and November as violence escalated.
Demonstrators are angry at police violence and what they see as Chinese meddling in the freedoms promised to the former British colony when it returned to Chinese rule in 1997, such as an independent judiciary.
This is a developing news story more to follow.