BEIJING - China and the United States were set for renewed confrontation yesterday, with Beijing warning of serious repercussions after Washington's announcement of a US$6.4 billion ($9 billion) arms deal with Taiwan.
Sanctions were imposed on US companies involved in the deal, and in one of a flurry of unusually strong statements, the Foreign Ministry said:
"It will be unavoidable that co-operation ... over important international and regional issues will also be affected."
The Foreign Ministry statement will add to concerns about the knock-on effects of the deal and whether it will hinder the prospect of new sanctions against China's ally Iran at the United Nations Security Council.
The Foreign Ministry said Beijing would postpone high-level consultation on strategic security, arms control and non-proliferation issues.
The Defence Ministry said it was suspending military exchanges because of the "harm and odious effect" of the deal.
The dispute comes amid growing tensions over issues including trade, climate change and internet censorship.
The arms deal includes Patriot missiles, Black Hawk helicopters and minehunter ships.
- OBSERVER
Taiwan arms sale angers China
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