Mr Pompeo said the sanctions targeted "current and former" party officials.
He said the move followed President Donald Trump's promise to punish Beijing over a proposed security law that could erode Hong Kong's autonomy.
China said the US decision was a "mistake" that should be withdrawn.
It comes just days ahead of a meeting of China's parliament.
The Standing Committee of the National People's Congress will discuss the new law at its meeting, which starts on Sunday.
China has proposed security legislation that would make it a crime to undermine Beijing's authority in Hong Kong, and could also see China installing its own security agencies in the territory for the first time.
The move has sparked a new wave of anti-mainland protests in Hong Kong.
BBC News
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