The move comes after the United States approved $300 million in military aid for the autonomous island, which holds elections within a week.
China has announced sanctions against five US arms manufacturers over their arms sales to Taiwan.
Beijing claims the self-governing island as part of its territory and has not ruled out using force to achieve its goals, while the United States is required by law to provide Taiwan with the means to defend itself.
The sanctions come ahead of Taiwan’s Jan. 13 presidential and parliamentary elections, which China says are a choice between war and peace.
Last month, the US State Department approved a $300 million weapons package to strengthen Taipei’s joint battle command and control system, prompting Beijing to say it would take unspecified “countermeasures” against the companies involved.
The Chinese Ministry of Foreign Affairs on Sunday sanctioned the companies BAE Systems Land and Armament, Alliant Techsystems Operation, AeroVironment, ViaSat and Data Link Solutions.
“The countermeasures consist of freezing the properties of those companies in China, including their movable and immovable assets, and prohibiting organizations and individuals in China from conducting transactions and cooperating with them,” the ministry said in a statement.
“US arms sales to China’s Taiwan region…seriously harm China’s sovereignty and security interests,” he added.
Beijing has increased pressure on Taiwan since Tsai Ing-wen was first elected president in 2016, saying it wants independence.
Tsai has said it is up to the people of Taiwan to decide their future.
Its vice president, William Lai, is running for the top job against Hou Yu-ih of the more China-friendly KMT.
Taiwan has reported regular sightings of Chinese fighter jets and balloons around the island in the weeks leading up to the election and has warned Beijing not to try to influence the outcome of the election.