China has reacted angrily to the United States' decision to place sanctions on six Chinese companies accused of supplying Iran with sensitive military equipment.

China's Foreign Ministry Wednesday demanded that the U.S. lift the sanctions immediately. The ministry said the U.S. actions will not benefit the two countries' cooperation in anti-proliferation efforts.

The year-long sanctions announced Tuesday block the firms from doing business with the U.S. government or obtaining American high-tech products. The State Department says the restrictions are an effective tool in blocking Iran from developing missiles and weapons of mass destruction.

The six Chinese companies are a missile exporter known as Norinco, the chemical equipment group Zibo Chemet Co., China Aero-Technology Import-Export Corp., Hongdu Aviation Industry Group, Ounion International Economic and Technical Cooperative Ltd., and Limmt Metallurgy and Minerals Co.

Sanctions were also imposed on two Indian companies and an Austrian firm.