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China halts military ties with U.S. on arms sales

BEIJING -- China suspended military exchanges with the United States and threatened sanctions against American defense companies Saturday, just hours after Washington announced US$6.4 billion in planned arms sales to Taiwan.

The development has further strained the complex relations between the two powers, which are increasingly linked by security and economic issues.

China's Defense Ministry said the sales to self-governing Taiwan, which the mainland claims as its own, cause “severe harm” to overall U.S.-China cooperation, the state-run Xinhua News Agency reported. The Foreign Ministry threatened sanctions against U.S. companies involved in the arms sales.

A spokeswoman for the U.S. Embassy, Susan Stevenson, had no comment on China's actions Saturday.

Taiwan is the most sensitive topic in U.S.-China relations, and the sales announced Friday could complicate cooperation between the two sides on issues ranging from Iran's nuclear program to the loosening of Internet controls, including a Google-China standoff over censorship.

China's Vice Foreign Minister He Yafei warned U.S. Ambassador Jon Huntsman that the sales of Black Hawk helicopters, Patriot Advanced Capability-3 missiles and other weapons to Taiwan would “cause consequences that both sides are unwilling to see,” a ministry statement said Saturday.

The United States is Taiwan's most important ally and largest arms supplier, and it's bound by law to ensure the island is able to respond to Chinese threats.

China responds angrily to any proposed arms sale, however, and it also cut off military ties with the U.S. in 2008 after the former Bush administration announced a multibillion-dollar arms sale to Taiwan.

Washington has tried to use military visits to build trust with Beijing and learn more about the aims of its massive military buildup.

Overall ties have been tense as President Barack Obama plans to meet with the Dalai Lama, the exiled spiritual leader of Tibet, this year. It's not known whether the Taiwan arms sale will affect President Hu Jintao's expected visit to the U.S. this year.

Experts on China warned Beijing could take further steps to punish the United States to show its newfound power and confidence in world affairs.

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