China's Foreign Ministry says it is suspending military exchanges and security talks with the United States over Washington's planned $6.4 billion arms sale to Taiwan.
The ministry also said it would impose sanctions on U.S. firms involved in the deal.
China's reaction comes a day after the Obama administration told Congress it was planning its first arms sale to Taiwan, including 60 Black Hawk helicopters and more than 100 Patriot antimissile rockets.
China considers Taiwan a breakaway province.
The State Department responded to China's statements by saying the weapons sales help maintain security and stability in the Taiwan Strait.
Pentagon spokesman Geoff Morrell said that "We regret that the Chinese side has curtailed military-to-military and other exchanges" over the sales.
compiled from agency reports