Oct 14 (Reuters) - China said on Monday it would punish

and sanction Taiwanese businessman Robert Tsao and lawmaker Puma

Shen for alleged criminal and pro-Taiwan independence

activities.

In a statement, the Taiwan Affairs Office said the "Black

Bear Academy" that both men were associated with was seeking to

incite separatism that would endanger cross-straits ties.

Tsao is one of Taiwan's richest men who pledged two years

ago to provide millions to two civilian defence training

programmes, including the Black Bear Academy. Shen helps run

Black Bear Academy training.

The State Council-level Taiwan Affairs Office said it would

include Tsao and Shen on a list of "Taiwan independence"

diehards and impose sanctions on them and the academy.

The move comes as China on Monday launched fresh military

drills around the democratically governed island that China

claims as its own. Beijing said the drills were a warning

against "separatist acts of Taiwan independence forces" while

denouncing Taiwan leader Lai Ching-te of the Democratic

Progressive Party (DPP).

Tsao and Shen would be barred from travelling to China, Hong

Kong and Macau, the statement added, while all affiliated

enterprises and businesses linked to the pair would not be

allowed to "seek profit" in China.

"The Black Bear Academy with the support of the DPP

authorities and external interference forces, has brazenly

cultivated violent Taiwan independence elements and openly

engaged in "Taiwan independence" separatist activities under the

guise of lectures, training, outdoor drills," the statement

read, citing spokesman Chen Binhua.

Tsao and Shen could not be immediately reached for comment.

Tsao is the founder and former chairman of chip maker United

Microelectronics Corp ( UMC ), and has said he hoped his

programmes would help train millions of "civilian warriors"

through a mix of survival, military and counter surveillance and

technology courses.

UMC had no immediate comment.

Shen is a lawmaker for the DPP with a background in

researching disinformation campaigns including from China.

"This is one of China's many acts of intimidation against

Taiwan, including economic coercion, military threats...," a DPP

spokesperson said in a statement to Reuters.

"These irrational acts will only further hurt the feelings

of the Taiwanese people and damage cross-strait relations."

(Reporting by James Pomfret; Editing by Kim Coghill and Lincoln

Feast.)