"Unfortunately, it's a zero-sum game now between China and the rest of the world, and what we need to do as a country is to work with the rest of the world," Navarro told CNBC.
Navarro said the United States needs to protect its interests in artificial intelligence and other high-tech industries, which is what China has also prioritized for the next decade.
China is attacking the "crown jewels" of the United States in its alleged theft of intellectual property on technology, Navarro added.
On July 9, the US Trade Representative imposed 10 percent tariffs on another $200 billion of Chinese imports into the United States.
The Trump administration has slapped 25 percent tariffs on $34 billion worth of Chinese goods, prompting a similar response from Beijing.
In an earlier round of tariffs announced in June and actualized on July 6, the United States announced 25 percent duties on $50 billion worth of Chinese goods to which China responded by imposing restrictions for the same amount of US imports.