China-taiwan Conflict, Asia | featured news

The Chinese government Saturday announced a series of harsh retaliatory measures in protest of the Pentagon's $6-billion arms sale to Taiwan, including a suspension of security exchanges and threatened sanctions on U.S. companies selling to Taiwan.

China said Saturday it had suspended military exchanges with the United States over Washington's $6.4-billion arms deal with Taiwan, the territory that Beijing claims as its own.

The Dalai Lama -- on a visit to Taiwan that includes prayers for recent typhoon victims -- has refuted China's claims that he is there for political reasons.

Thousands of opposition supporters protest against the Taiwan president's policies of engagement with China.

Taiwan and China signed agreements on financial cooperation, expanding air links across the Taiwan Strait and jointly fighting crime, in a move to improve further trade and economic relations.