Navarro, picked by Trump to run a new National Trade Council at the White House, has accused China of effectively waging economic war against the United States.
The book was made into a documentary about Beijing's desire to become the dominant economic and military power in Asia.
"There is real cause for concern as the president-elect has named economist Peter Navarro, known for his anti-China alarmism, as his trade adviser", said the China Daily, which is aimed at foreign readers.
While Navarro's appointment might seem like small potatoes in the wake of some of Trump's other provocations - which include taking a call from the President of Taiwan and suggesting that a nuclear arms race wouldn't be such a bad thing - there's good reason for China to see Trump's pick as a threat to the relationship between the two countries.
Asked by reporters Thursday about Navarro's appointment, foreign ministry spokeswoman Hua Chunying said Beijing has been observing the incoming US administration's transition and its policy direction. He has threatened to hit Mexico and China with high tariffs once he takes office on Jan 20.
Mr Shen Danyang, spokesman for China's Ministry of Commerce, told a news briefing in Beijing yesterday that the U.S. will continue to see mutual benefits from trade with China, and said the pattern of deepening cooperation between the two countries on trade will continue.
"Regardless of what changes happen in the USA government-president, commerce secretary, trade representative-common interests (between the United States and China) are greater than differences", Shen said.
"This has happened in the past and could happen in the future", Mr Shen added, without elaborating.
China on Friday said General Motors's joint venture would be fined 201 million yuan ($28.94 million) for monopolistic pricing, ending speculation after the China Daily reported on December 14 that China would fine a USA automaker.
The Global Times, an influential tabloid published by the ruling Communist Party's official People's Daily, said Trump's choice of Navarro was "by no means a positive signal".
"China needs to face up to the reality that the Trump team maintains a hard-line attitude towards China. It must discard any illusions and make full preparations for any offensive move by the Trump government", it said in an editorial. Yglesias contends that Navarro and Ross assume that cutting imports automatically increases growth, arguing that Trump's favorite heterodox China experts fail to account for the fact that when you cut the supply greatly (by reducing the number of imports), costs go up. Beijing will get used to the tensions between the two countries.
Mr Navarro, 67, a professor at University of California, Irvine, advised Mr Trump during his campaign.
As well as describing what he sees as America's losing economic war with China, Navarro has highlighted concerns over environmental issues related to Chinese imports and the theft of USA intellectual property.