City came from behind to defeat the French giants 2-1 to book their place in the last 16 of the tournament as group winners and Guardiola feels that the performance means they should be feared by Europe's best.
The Spanish coach said: "PSG – what a team, what players, what can I say? We tried to keep these players far away from our goal. When they are close to your goal they can do anything.
"We are happy to be in the next stage. Congratulations to everyone in the club. It’s many years of being there.
"Now we will focus on the Premier League and try to arrive in February in the best condition possible to go to the quarter-finals."
City were hampered by injuries to a number of attacking players before the game but Guardiola was thrilled to see his team perform to such a high level and hopes his side can keep it up.
He said: "We know each other quite well and they know what they have to do.
We played really well and the way we are performing is really good. People enjoy watching us and we are enjoying playing.
"Hopefully we can sustain this as long as possible."
PSG boss Mauricio Pochettino also praised City's performance and felt his star-studded team were handled well by their opponents.
He said: "Being honest, I think we need to give the credit to Man City. But, second half, it's true after 0-0 in the first half, we scored, we were calm because we were controlling them very well. The circumstances of the game changed a little bit and we conceded two goals. Man City is a very good team."