China has become less of an arms client and more of a cutting-edge defence technology partner with Russian Federation since it started developing more of its own weapons, military observers say.
"We strongly call on the United States to remedy the mistake and cancel the sanctions".
While being added to the blacklist does not trigger sanctions, anyone doing business with a blacklisted person or entity could face penalties like those imposed on China. "China and Russia may think "we have to partner to share the cost and share the technology", so you get Chinese-Russian products", Wezeman said.
"Each new round of sanctions proves our foe's complete lack of success in pressuring Russian Federation with previous such attempts", said Ryabkov, who added that Washington would never succeed in dictating its conditions to Moscow.
The sanctions block the Chinese agency from applying for export licenses and from participating in foreign exchange transactions under USA jurisdictions.
Washington also blacklisted an additional 33 people and entities associated with Russian military and intelligence.
Foreign Ministry spokesman Geng Shuang said Beijing had lodged stern complaints with Washington over the action, which triggers a ban on entering the US, forbids conducting transactions with the USA financial system and forces the blocking of all property and interests in property within US jurisdiction.
According to agency reports, it was the first time a third country has been punished under the CAATSA sanctions legislation for dealing with Russian Federation, and signalled the Trump administration's will to risk relations with other countries in its campaign against Moscow.
"We strongly urge the U.S. to immediately correct the mistakes and revoke the so-called sanctions; otherwise the United States must bear the consequences", he warned.
And in November 2015, China became the first overseas client to buy Russia's most advanced fighter jet when it signed a US$2.5 billion contract for 24 Su-35s.
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"They are instead aimed at imposing costs upon Russian Federation in response to its malign activities", the official said.
The US action violated the basic principles of global relations, the ministry of foreign affairs (MFA), Geng Shuang said.
"It appears that it has become a sort of national pastime there", he added, noting the latest round of anti-Russian measures was the 60th since 2011.
"The imposition of USA sanctions will have zero impact on Russian arms sales to China", said Ian Storey, of Singapore's ISEAS Yusof Ishak Institute.
For many years, China was Russia's biggest military client, relying on Moscow for advanced weapons and adapting some of the technology for its own systems.
Administration officials said they hoped the action against EDD would send a message to others considering buying the S-400.
He declined to answer a question whether the USA would be taking similar action against countries, like Turkey, that buy S-400 missile defence system.
"We hope that at least this step will send a signal of our seriousness and perhaps encourage others to think twice about their own engagement with the Russian defense and intelligence sectors", another USA official said.
Washington has expressed concern that Turkey's planned deployment of the S-400s could pose a risk to the security of some USA -made weapons and other technology used by Turkey, including the F-35 fighter jet.