Taiwan arms deal China imposes sanctions on U.S. 31st Jan 2010

Taiwan arms deal China imposes sanctions on U.S. 31st Jan 2010.

China has vowed to suspend military exchanges and security talks with Washington and to impose sanctions on US firms involved in a deal to sell arms to Taiwan.
In a statement the foreign ministry said that in protest at the US arms sales to Taiwan it was suspending military exchanges, along with scheduled high-level talks on strategic security, arms control and non-proliferation.
China will also introduce sanctions specifically targetting the US companies involved in the arms deal, the statement said.
China took a similar step in 2008 after the former Bush administration announced a multibillion-dollar arms sale to Taiwan - the most sensitive issue in US-China relations. The latest arms sales could complicate the cooperation the US seeks on issues ranging from Iran's nuclear program to the loosening of internet controls, including a Google-China standoff over censorship.
China claims the self-governing Taiwan as its own, while the United States is Taiwan's most important ally and largest arms supplier.
The US government is bound by law to ensure the island is able to respond to Chinese threats.
Though Taiwan's ties with China have warmed considerably since Taiwanese President Ma Ying-jeou took office 20 months ago, Beijing has threatened to invade if the island ever formalises its de facto independence.
China has more than 1,000 ballistic missiles aimed at Taiwan.

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