The US Senate had unanimously approved a bill to rename a the stretch of road in front of the Chinese embassy after Liu Xiaobo, who was jailed for 11 years in 2009 for subversion.
The bill, passed on Friday, was put forward by Senator Ted Cruz, a leading contender for the 2016 Republican presidential nomination. A similar bill was passed by the House of Representatives in June 2014.
Reacting to the Senate's move, Global Times, a state-run Chinese newspaper known for its nationalistic views, said, "The apparently provocative move intends to outrage and unsettle China. But this is no big deal.
"In addition to anger, it will enable us to learn more about the US from another perspective: the US has big problems in abiding by the rules and keeping self-respect and its Congress acts so rashly," it said in an editorial.
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"The only option for Washington seems to be petty actions that disturb China. But these can help China better understand what vile characters it will meet during its rise and face whatever awkwardness comes by dealing with them," it said.
The editorial attacked Liu, saying, "This latest move by Congress cannot change the fact that Liu jeopardised China's national security and was sentenced to jail. The rise of China is being confronted by external forces like the US. Whether Liu feels proud of such turbulent embraces from the West or not, he has become a tool of the West against China."
"They may have underestimated how discerning Chinese people can be," the editorial said while also noting that a White House spokesperson said senior advisers to US President Barack Obama would recommend that he veto the bill.