Defense officials confirmed news reports of the cancelled meeting.
The Trump administrations imposed 10 per cent of tariffs on $200 billion in Chinese goods in September, in addition to the trade measures already in place. And Beijing also opposes a USA decision to issue a visa ban and assets freeze on China's Equipment Development Department and its director, Li Shangfu.
Trump has said signs of economic weakness in China and its slumping stock markets are proof of the effect US tariffs are having on the Chinese economy.
Last Monday, the U.S. proposed a $US330 million arms sale to Taiwan to bolster its air combat capabilities.
Reuters reported on Sunday that China cancelled a security meeting with Mattis that had been planned for October.
But he suggested steeps tariffs he has placed on USA imports of Chinese products have yet to bend Beijing's will.
U.S. Air Force B-52 bombers also conducted transit operations in worldwide airspace over the South China Sea and East China Sea last week, which the Pentagon called part of "continuous bomber presence" in the region, and China called "provocative".
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Washington dairy interests optimistic in wake of new trade agreement
Trade Representative (USTR)'s office said the two classes will be eradicated within six months of the new deal coming into force. NAFTA had been created to reduce trade barriers between Canada, the US and Mexico by eliminating tariffs on traded products.
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Two B-52s flew over the South China Sea last week in what the Pentagon called a routine mission.
China criticised the flights, calling them "provocative" and threatening to "take necessary measures' to defend its national interests".
There was no immediate reaction from China, but a similar USA operation in July, involving the disputed Paracel islands, prompted a furious Beijing to deploy military vessels and fighter jets. -China military relationship in recent years has been the South China Sea, where five governments claim territory in the oil- and gas-rich area. Last Wednesday, President Donald Trump, who has long touted his friendship with Chinese President Xi Jinping, suggested that this friendship may have come to an end.
During his remarks, which focused on a new USA trade deal with Canada and Mexico, Trump hailed the power of tariffs he has imposed to bring American trading partners to the table.
"He may not be a friend of mine anymore".
The diplomatic rift between Washington and Beijing has spilled over from military and trade issues into the political arena in the past week, after Trump accused China of meddling in the upcoming United States elections.
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