"China has a strict policy on the control of military trade and arms exports," the foreign ministry said in a statement to AFP.

"We always support and participate actively in international efforts to prevent proliferation.

"China does not allow any Chinese entity to engage in such activities of missile proliferation."

The US Wednesday imposed punitive measures on China Precision Machinery Import-Export Corporation (CPMIEC), according to a State Department notice posted in the Federal Register, a government gazette.

The notice did not identify the country to which alleged exports had gone.

However, according to a study compiled by the Monterey Institute's Center for Nonproliferation Studies, CPMIEC has previously sent missile technology to Pakistan and Libya.

The foreign ministry said the sanctions were inappropriate.

"There is no reason that the United States should use sanctions on other countries' companies, according to their own law and politics instead of control standards of international proliferation prevention."

Based in Beijing, CPMIEC is a unit of the China Aerospace Corporation.

The decision on sanctions came just days after a senior State Department official complained at gaps in China's non-proliferation policies, despite Beijing's promises to Washington to halt such exports.

The sanctions, which are largely symbolic, prohibit the US government entering into contracts with the targeted firm, and prevent exports by that company into the United States.

The United States previously imposed sanctions on CPMIEC in May 2002 and June 2003 for sales to Iran and in 1991 for violations of more general missile proliferation laws.

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