China-taiwan Conflict, Arms Deal | featured news

In unusual praise for China, U.S. Defense Secretary Leon Panetta said Sunday that Beijing deserved credit for its relatively mild response to Washington's announcement last month of a $5.8 billion arms sale to Taiwan.

China’s foreign ministry spokesman said Monday that Beijing “firmly opposes” the Obama administration’s plans to upgrade Taiwan’s aging fleet of F-16 fighter jets, but the measured tone suggested Chinese leaders may want to avoid sparking a full-scale confrontation with Washington over the issue.

Taiwan has effectively dropped a request for U.S. submarines to help shore up the balance of power with political rival China, a military source said on Tuesday, dissolving what could be a new rift in tense Sino-U.S.

China has said it will impose unspecified sanctions on U.S. firms selling weapons to Taiwan in retaliation for the U.S. announcement that it planned to sell $6.4 billion of arms to Taiwan, which Beijing considers a breakaway province.

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.