Pep Guardiola's men were pegged back early by Idrissa Gueye's strike, before Lionel Messi added a second with 16 minutes remaining in the encounter.
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City had a flurry of chances inbetween the goals for the hosts, hitting the crossbar twice and forcing PSG goalkeeper Gianluigi Donnarumma into multiple saves, the best stop coming from Kevin de Bruyne's goal-bound strike in the second half.
Dias skippered City in Paris and feels that the team created enough to win the game.
"Definitely a frustrating night, we were there, we created chances," he said.
"But at the end, a game between two top team like this will be decided on details. Today it was their turn. Essentially we have to do better, because we are who we are. We can always to better when we don't win.
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"It's always a 50-50 game, especially against the opponents we playing. They also know we are dangerous.
"We had our chances. Many times to change games like this you have to score. On that clear chances, if we were able to do it, things might have changed a lot. We performed, knowing that we did what we do and we did our best."
The centre-back also spoke about the remaining fixtures in the group stage and preparations for Sunday's Premier League clash with Liverpool.
Watch the entire interview via the video above.