Beijing says the US misused power by blacklisting more than 60 Chinese companies after the Trump Xi summit in May.
The Chinese embassy in Washington said the US has disregarded the consensus reached by the leaders of China and the US during their meeting in Beijing.
It added that the Trump administration has excessively expanded the concept of national security, misused state power and unjustifiably suppressed Chinese enterprises, seriously undermining their legitimate rights and interests.
Sources familiar with the matter told the South China Morning Post that while the latest tit for tat actions are unhelpful they are unlikely to adversely impact Xi’s likely visit to the United States in September.
Affected Chinese tech firms have taken legal steps to fight the Pentagon’s designation.