China: US spat over Taiwan could hit co-operation

BEIJING — China on Tuesday warned the United States that their cooperation on international and regional issues could suffer over Washington's decision to sell arms to Taiwan.

Beijing also urged US firms selling arms to Taipei to back away from the multi-billion-dollar deal, after warning those companies could face Chinese sanctions.

"China-US relations, in important international and regional issues, will inevitably be influenced and the responsibility completely lies with the United States," foreign ministry spokesman Ma Zhaoxu told reporters.

"We strongly urge relevant US companies to stop pushing forward and taking part in the arms sales to Taiwan," Ma said.

The United States has approved a package of Patriot missiles, Black Hawk helicopters and other military hardware totalling 6.4 billion dollars for Taiwan, which China views as part of its territory awaiting reunification.

China, which has always strongly opposed US sales to Taiwan, reacted angrily to the news, cutting off military and security contacts with Washington, and threatening to impose sanctions on the firms involved in the transaction.

Raytheon Co. and Lockheed Martin Corp. were awarded a 2.81-billion-dollar contract as part of the deal to produce the Patriot system, which is meant to defend against incoming missiles.

Neither defence company has major operations in China, which has been under a US and EU arms embargo since its bloody crackdown on pro-democracy protesters in 1989.

But Boeing -- whose McDonnell Douglas unit was given a 37-million-dollar contract for 12 Harpoon missiles to Taiwan -- is an aerospace giant which counts China as one of its largest markets.

United Technologies unit Sikorsky Aircraft is supplying Black Hawk helicopters to the self-ruled island.