The US has defended a proposed weapons sale to Taiwan following a furious response from China.
The US State Department said on Saturday that the sale contributed to "security and stability" between Taiwan and China, Reuters reported.
Beijing announced a series of moves against the US in retaliation for the proposed $6.4bn (£4bn) sale.
Ties between the two countries are already strained by rows over trade and internet censorship.
"Such sales contribute to maintaining security and stability across the Taiwan Strait," said US State Department spokeswoman Laura Tischler, quoted by Reuters.
The US is the leading arms supplier to Taiwan and has a treaty obligation to provide it with defensive arms.
'Severe harm'
Beijing said it would suspend military exchanges with the US, review co-operation on major issues and impose sanctions on companies selling arms.
However, the US - like the EU - has banned its companies selling arms to China since the 1989 Tiananmen Square massacre, so it was not clear what effect Chinese sanctions would have.
Chinese defence ministry spokesman Huang Xueping said the measures reflected the "severe harm" posed by the deal.
A foreign ministry spokesman said the arms deal would have "repercussions that neither side wishes to see".
Difficult ties
Taiwan and China have been ruled by separate governments since the end of a civil war in 1949.
Beijing has hundreds of missiles pointed at the island and has threatened to use force to bring it under its control if Taiwan moved towards formal independence.
Defence ties between Washington and Beijing have been on ice for several years because of differences over Taiwan, though the two countries' leaders pledged to improve them in 2009.
Taiwan, meanwhile, welcomed the US move.
"It will let Taiwan feel more confident and secure so we can have more interactions with China," the Central News Agency quoted President Ma Ying-jeou as saying.
The Pentagon earlier notified the US Congress of the proposed arms sale, which forms part of a package first pledged by the Bush administration.
Friday's notification to Congress by the Defense Security Co-operation Agency (DSCA) was required by law. It does not mean the sale has been concluded.
US lawmakers have 30 days to comment on the proposed sale, Associated Press reported. If there are no objections, it would proceed.
The arms package includes 114 Patriot missiles, 60 Black Hawk helicopters and communications equipment for Taiwan's F-16 fleet, the agency said in a statement.
It does not include F-16 fighter jets, which Taiwan's military has been seeking.
Last week US Secretary of State Hillary Clinton angered Beijing with a call to China to investigate cyber attacks on search giant Google, after the company said email accounts of human rights activists had been hacked.
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