City looked to be bringing the trophy back to Manchester when Cole Palmer curled a shot beyond Aaron Ramsdale in the 77th minute.
However, a deflected Leonardo Trossard shot deep in added time equalised for Arsenal and took the game to penalties.
Arsenal 1-1 City | Match report
Mikel Arteta’s side won 4-1 from the spot to win the annual curtain raiser.
It’s our third straight defeat in the Community Shield.
However, after losing those matches we went on to win the Premier League in both seasons as well as the Champions League and FA Cup in the last campaign.
Now we move on to Friday’s Premier League opener with Burnley at Turf Moor.
With that in mind, Guardiola was keen to stress his team are still improving after a short pre-season.
“Win or lose, right now I know the position of the team,” he said in his post-match press conference.
“We have to recover well and prepare for Burnley and then travel to Athens, play at 10pm, finish at 2am come back and play Saturday against Newcastle at home. This is my plan.
“We would love to win today absolutely but sometimes you have to accept it and give credit to your opponent.”
Watch the full press conference above...
