Beijing imposed sanctions on Saturday against 20 US defence-related companies and 10 executives, a week after Washington announced large-scale arms sales to Taiwan.
The sanctions entail freezing the companies' assets in China and banning individuals and organisations from dealing with them, according to the Chinese foreign ministry.
The companies include Northrop Grumman Systems Corporation, L3Harris Maritime Services and Boeing in St. Louis, while defence firm Anduril Industries founder Palmer Luckey is one of the executives sanctioned, who can no longer do business in China and are barred from entering the country. Their assets in the East Asian country have also been frozen.
The announcement of the US arms-sale package, valued at more than US$10 billion (NZ$17.1 billion), has drawn an angry response from China, which claims Taiwan as its own and says it must come under its control.
If approved by the American Congress, it would be the largest-ever US weapons package to the self-ruled territory.
"We stress once again that the Taiwan question is at the very core of China's core interests and the first red line that must not be crossed in China-US relations," the Chinese foreign ministry said in a statement on Saturday. "Any company or individual who engages in arms sales to Taiwan will pay the price for the wrongdoing."
The ministry also urged the US to stop what it called "the dangerous moves of arming Taiwan".
Taiwan is a major flashpoint in US-China relations that analysts worry could explode into military conflict between the two powers. China says that the US arms sales to Taiwan would violate diplomatic agreements between China and the US.
China's military has increased its presence in Taiwan's skies and waters in the past few years, holding joint drills with its warships and fighter jets on a near-daily basis near the island.
Under the American federal law, the US is obligated to assist Taiwan with its self-defence, a point that has become increasingly contentious with China. Beijing already has strained ties with Washington over trade, technology, and other human rights issues.
SHARE ME