Amid rising global tensions, last week the US ordered Beijing to close its consulate in Houston after Washington accused Chinese agents of stealing medical research.
Today, Chinese authorities took over the US consulate in Chengdu days after Beijing ordered it to close in retaliation.
CCTV footage has also emerged showing the American flag being lowered.
In a statement, the foreign ministry said: “Afterwards, Chinese authorities entered through the front entrance and took it over.”
In response, some citizens lit firecrackers outside the consulate in Chengdu to celebrate the closure.
Terrifying footage shows a man setting off braids of fireworks as they light up in front of the building.
According to state broadcaster CGTN, the man was removed by police following the incident.
Over the weekend, removal trucks entered the site and cleaners were spotted carting rubbish bags from the consulate.
The US insignia was also removed from the front of the building as tensions between the two nations escalate.
Beijing has said the closing of the consulate was a “legitimate and necessary response to the unreasonable measures by the United States.”
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He said: “But I can tell you for the last two years, I and other members of the intel committee have been holding classified briefings with business leaders and academic leaders about the concerted efforts of the Chinese communist party to steal our intellectual property.
“To steal it from companies, to steal it from universities, to be on better guard.”
Tensions between the US and China has erupted over recent weeks following the outbreak of COVID-19.
Since cases of the deadly pandemic were first reported in the Chinese city of Wuhan, US President Donald Trump has continually blamed the communist nation for the virus.
Mr Trump has previously lashed out at the World Health Organisation claiming they are “China-centric” and helped the Chinese authorities cover up the pandemic.
But, China has rejected all allegations and one official even suggested the deadly virus could have been brought into Wuhan by US military.
The US currently has the highest infection and death rate across the entire globe.
Infections have surpassed four million while the total number of deaths is estimated at around 149,414.