The Defense Ministry said the USA had no right to interfere in Chinese military cooperation with Russian Federation.
The purchase of major military equipment like the multi-billion-dollar S-400 Triumf missile system from Russian Federation would be considered as a "significant transaction" and has a potential for imposing tough U.S. sanctions, the Trump administration said on Friday.
The transactions that triggered the U.S. sanctions involved EDD's purchase of Russian Su-35 combat aircraft and S-400 surface-to-air missile system-related equipment. Under the sanctions law, China's Equipment Development Department, along with its chief Li Shangfu, will be prohibited from accessing the USA financial system and any assets they hold in the United States will be frozen. "The US approach is a blatant violation of the basic norms of worldwide relations", Wu said in a notice posted on the ministry's official Wechat account.
Hours after United States issued new sanctions against Moscow, Russian Deputy Foreign Minister Sergey Ryabkov warned Washington that playing with fire was foolish and unsafe.
The statement came after the Trump administration added 33 Russian defense and intelligence officials and entities to the sanctions list and also targeted the Equipment Development Department, China's leading arms acquisition body, for buying Russian arms.
China's purchase of the weapons from Rosoboronexport, Russia's main arms exporter, violated a 2017 law, the Countering America's Adversaries Through Sanctions Act (CAATSA), meant to punish the government of President Vladimir Putin for interfering in United States elections and other activities.
The spat adds to tensions between the two global powers over trade, China's treatment of religious groups and the Asian country's claims to disputed islands in the South China Sea.
China cancels trade talks with US
With no settlement in sight, forecasters say the conflict between the two biggest economies could trim global growth through 2020. Meanwhile, $US110 billion of goods from the US will become subject to Chinese retaliatory tariffs around the same time.
Chinese Foreign Ministry spokesperson Geng Shuang expressed Beijing's "strong indignation" against Washington's move, saying it violated the basic norms of global relations.
He says the US will have to "take all the consequences" if it ignores China's demands.
Some of those added to the list, which now contains 72 names, were indicted in connection with Russian interference in the 2016 USA election, a U.S. official said.
President Donald Trump on Thursday issued an executive order meant to facilitate implementation of the sanctions.
Russian Federation also responded to Thursday's sanctions, saying the U.S.is "playing with fire", Al Jazeera reports.
EDD will be denied U.S. foreign export licences, banned from making foreign exchange transactions within United States jurisdictions and prohibited from using the USA financial system.
The US restrictions on China were triggered by two major arms deals agreed between China and Russian Federation - a 2017 agreement for 10 Su-35 fighter aircraft, and a 2018 deal to supply the S-400 air defense system.