The Chinese Foreign Ministry said in a statement on Sunday (7 January) that the sanctions were 'in response to these gravely wrong actions taken by the US', although they did not name the recent aid package specifically.
A company owned by FTSE 100-listed firm BAE Systems has been named as one of five US-related defence companies being put under sanctions by the Chinese government.
The subsidiary BAE Systems Land and Armaments is based in the US and provides combat vehicles and munitions. It was part of a recent $300m military aid package the US agreed last month for Taiwan in the run up to the latter's election on 13 January.
Stock Spotlight: BAE Systems 'strategically positioned' to profit from rising defence demand
A spokesperson for the Chinese Foreign Ministry said in a statement on Sunday (7 January) that the sanctions were "in response to these gravely wrong actions taken by the US", when asked directly about the aforementioned deal.
They said the recent arms sales "seriously harm China's sovereignty and security interests, undermine the peace and stability across the Taiwan Strait, and violate the legitimate and lawful rights and interests of Chinese companies and individuals".
UK businesses forecast sizeable drop in inflationary pressures
US weapons sales to Taiwan are a frequent source of tension between Beijing and Washington.
China views democratically-governed Taiwan as its territory, a claim Taiwan's government rejects.
The other companies included in the ban are Alliant Techsystems Operation, AeroVironment, ViaSat and Data Link Solutions.
The spokesperson said the sanctions consisted of freezing the properties of the companies in China, including their movable and immovable property, and prohibiting organisations and individuals in China from transactions and cooperation with them.
