"It is nothing more than a sheer farce," Chinese Foreign Ministry spokesperson Hua Chunying told a media briefing here while replying to a question on the US move.
It is "meaninglessly hyping the so-called human rights issue and the case of Liu Xiaobo," Hua said.
Reports from Washington said the US House Appropriations Committee included a proposal in its 2015 State Department budget to rename the stretch of road in front of the embassy as "Liu Xiaobo Plaza".
He won the Nobel Peace Prize in 2010 for his contribution towards highlighting the human rights situation in China.
US Republican Representative Frank Wolf in a statement said the change would highlight Liu's "unjust imprisonment".
In the 1980s, the street in front of the Soviet Embassy in Washington was named after dissident Andrei Sakharov.