The Foreign Ministry in Beijing on Thursday imposed sanctions on 13 US military firms in response to the sale of American weapons to Taiwan.
The move followed Beijing's strong objection to Washington authorising a potential US$385 million sale of spare parts and support for radars and F-16 fighter jets to the island.
China said the move undermines its sovereignty and territorial integrity.
The sanctions also cover six top executives at some of the companies including Raytheon and BAE Systems.
The Foreign Ministry said the sanctioned companies would have their assets in China frozen and be banned from trading with Chinese firms, while the executives would be barred from entering China, including Hong Kong and Macau.
Beijing on Thursday also urged Washington to "stop sending the wrong signals" after US House Speaker Mike Johnson had a phone call with Taiwan leader Lai Ching-te.
"I would like to emphasise once again that the Taiwan issue is the core of China's core interests and the first red line that may not be crossed in Sino-U.S. relations," Foreign Ministry spokesman Lin Jian told a regular news briefing in Beijing.
China has condemned Washington for allowing Lai to stop over in both Hawaii and Guam during a visit to the Pacific. (Agencies)