Chinese Foreign Ministry spokesman Zhao Lijian said at a press conference on Tuesday that they had decided to impose sanctions on Lockheed Martin.
As a result of sanctions against countries selling arms to Taiwan, China will go to restrict to supplier countries.
Chinese media reports said US-based Lockheed Martin would also be under sanctions. Although the company does not have a direct agreement with China, spare parts and rare earth elements are procured from Beijing.
The Patriot Advanced Capability-3 (PAC-3) air defense system was recently signed in the United States and Taiwan.
It is thought that pac-3 will face sanctions because its main contractor is Lockheed Martin.