China has released more details after adding Lockheed Martin Corp and Raytheon Missiles & Defense – two US arm suppliers to its Taiwan region - into its Unreliable Entity List earlier this year, said the Ministry of Commerce in an online statement on late Tuesday.

China, on February 16, banned senior executives of the two US companies including James Taiclet, chairman, president and CEO of Lockheed Martin, and Wesley Kremer, president of Raytheon Missiles & Defense from entering, working, staying or residing in the country.

The reason behind this decision was that these two US companies have a history of selling arms to China's Taiwan region, which is considered to be of a malicious nature, according to the commerce ministry.

The Chinese government aims to prevent Chinese products from being used in their military industry and therefore has prohibited these US companies from engaging in import and export activities related to China.

The statement said that domestic businesses have also been instructed not to conduct any relevant import and export activities with these two US companies.

This move highlights the importance of complying with Chinese laws and regulations when it comes to conducting business activities in China, said Zhang Hua, a researcher at the Taiwan Studies Institute of the Chinese Academy of Social Sciences in Beijing.

China will always keep its door open to global companies, but will not hesitate to punish those profiteering from sabotaging its sovereignty and territorial integrity, he added.