Businessman Robert Tsao and lawmaker Puma Shen are now barred from entering mainland China or the special administrative regions of Macau and Hong Kong, said Chen Binhua, spokesperson for Beijing's Taiwan affairs office.

Beijing considers Taiwan a part of its own territory and has not ruled out using force to bring it under control.

On Monday, the Chinese military launched its fourth round of war games targeting Taipei in just over two years in what it called a "stern warning" to alleged pro-independence forces on the island.

Tsao and Shen's family members will face similar entry bans, and any businesses affiliated with the two will be barred from "seeking profit" in China.

Chen said Chinese authorities will also block any activity on the mainland by Kuma Academy, a civil-defence training organisation founded by Shen and to which Tsao -- founder of Taiwanese microchip maker United Microelectronics Corporation -- has donated money.

The group aims to prepare ordinary citizens for war and "increase determination to defend and resist invaders, ultimately building a protective shield for our country", according to its website.

Chen accused the two Taiwanese of "nakedly splitting the country, inciting separatism, severely harming the stability of the Taiwan Strait, severely damaging the shared interests of compatriots on both sides of the strait and the fundamental interests of the Chinese nation."

Shen hit out at Beijing's decision on Monday, telling reporters that it was no coincidence the sanctions were announced during the drills, and "since it is China flying the planes, it is clearly China that is actually engaging in provocation."