USA officials said that the United States could consider similar action against other countries taking delivery of Russian fighter jets and missiles.
"We strongly urge the U.S.to immediately correct its mistakes and revoke the so-called sanctions".
CAATSA, or the Countering America's Adversaries Through Sanctions Act, was passed in 2017 as a tool that gives Washington more ways to target Russia, Iran and North Korea with economic and political sanctions.
Speaking to reporters at a regular press conference on Friday, Chinese foreign ministry spokesperson Geng Shuang said the sanctions were unreasonable, adding: "The US actions have seriously violated the basic principles of worldwide relations and seriously damaged the relations between the two countries and the two militaries".
The purchase violated a 2017 law meant to punish the government of President Vladimir Putin for interfering in US elections and other activities.
China has told the Trump administration to remove punitive sanctions against its military, or "bear the consequences".
This is the first time the U.S. has issued penalties under Caasta - Section 231 of the United States law which prevents individuals from doing business with anyone placed on the blacklist.
"They are instead aimed at imposing costs upon Russian Federation in response to its malign activities", the official said.
A senior USA administration official, speaking on condition of anonymity, insisted the ultimate target was Russian Federation.
The U.S. broadened sanctions against people and groups working on behalf of Russian Federation, including individuals who were indicted as part of Special Counsel Robert Mueller's investigation into the country's meddling in the 2016 election.
Countries including India and Turkey have decried that it violates their ability to make prudent decisions about military procurement, while officials in the European Union have raised concerns about how the sanctions could affect gas pipeline projects with Russian Federation.