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From:	Millie (75.107.206.117)
Subject:	China flexing muscles we helped them build
Date:	January 30, 2010 at 10:17 am PST

(Reuters)

30 January 2010, 6:16 PMBEIJING - China threatened to impose sanctions on U.S. arms firms and cut cooperation with Washington unless it cancels a $6.4 billion arms sale to Taiwan, in an unprecedented move signalling Beijing’s growing global power.

China on Saturday bitterly denounced the Obama administration’s announcement a day earlier that it wanted to sell the package of weapons to Taiwan, the self-ruled island that Beijing views as an illegitimate breakaway state.

The dispute deepens the rifts between Beijing and Washington, already at odds over trade, currency, Tibet and the Internet.

Beijing said it would formally sanction U.S. companies that sold arms to Taiwan, a break with past practice. Previously, China’s commercial reprisals have been informal. snip

The Obama administration told the U.S. Congress on Friday of the proposed sales, which include Black Hawk helicopters, Patriot “Advanced Capability-3” anti-missile missiles and two refurbished Osprey-class mine-hunting ships. snip

The Black Hawk, a tactical transport helicopter, is built by Sikorsky Aircraft, a unit of United Technologies Corp. The Patriot missile is built by Lockheed Martin Corp, and Raytheon Co is the system integrator.

“China will also impose corresponding sanctions on U.S. companies that engage in weapons sales to Taiwan,” the Foreign Ministry said, without naming any firms.

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