Beijing said on Thursday that it will impose sanctions on companies involved in US arms deal with Taiwan and warned that warming China-US military ties will "inevitably be affected", in response to the first such major arms agreement in more than four years.

"US companies' involvement in the arms deal with Taiwan severely impacts China's sovereignty, security and interests," Foreign Ministry spokesman Hong Lei said at a daily briefing.

"The Chinese government and Chinese enterprises will not carry out cooperation and commercial interaction with any of these companies," he said.