In the 18-team tournament in the United States, City opened the scoring through Leroy Sane early in the second half but fell to defeat as Mohamed Salah and a late Sadio Mane penalty sealed victory at the MetLife Stadium.
And after the game manager, Jurgen Klopp admitted the surprise inclusions of the African stars, who featured at the 2018 FIFA World Cup made a big impression.
"The game for us was very important, but it is not a sign in the direction or whatever," he told the club's website.
"It's only a game we played and a lot of good moments which we can use and a lot of bad moments we can work on. That's all.
"He [Salah] came in and scored after pretty much 35 seconds. He had a big impact together with Sadio and Dom (Salanke), and the midfield with Marko (Grujic), Pedro (Chirivella) and Ben (Woodburn) played fantastic."
Other ICC results:
Juventus 2-0 Bayern Munich
Borussia Dortmund 2-2 Benfica (3-4 on penalties)
Roma 1-4 Tottenham Hotspur
Manchester United 1-1 AC Milan (9-8 on penalties)