CHINA announced sanctions today against two US companies over what it says is their support for arms sales to Taiwan.

This comes a day after the Chinese hit back at a European Union investigation into Chinese wind turbine makers.

Today’s announcement freezes the assets of General Atomics Aeronautical Systems and General Dynamics Land Systems held within China. 

The measure also bars the companies’ management from entering the country.

This followed accusations by the Chinese on Monday of EU protectionism undermining action to save the planet as the European bloc announced it was opening a new investigation into Chinese wind turbine makers.

A Chinese government statement said: “The European side’s reckless distortion of the definition of subsidies, and the lack of openness and transparency in procedural standards during the investigation, is a protectionist act that harms the fair competition environment in the name of fair competition.”

The investigation will look into whether Chinese subsidies are giving wind turbine companies an unfair advantage in the competition for projects in five member countries: Spain, Greece, France, Romania and Bulgaria.

“We’re making full use of the tools that we have,” the EU commissioner for competition, Margrethe Vestager, said in announcing the move.

The China Chamber of Commerce to the EU described the investigations as “an act of economic coercion” that undermines the EU’s commitment to reducing greenhouse gas emissions.

The EU also announced investigations last week into two Chinese solar panel makers bidding for a 455-megawatt solar park in Romania. 

The EU’s move follows comments made by US Treasury Secretary Janet Yellen during a recent visit to China.

Ms Yellen called for changes to a Chinese industrial strategy that she said has “the potential to flood our markets with exports that make it difficult for American firms to compete.”