China says it will freeze out US companies

China's government and Chinese companies will cut business ties with US firms selling arms to Taiwan, China's Foreign Ministry said yesterday, declining to give details of the sanctions in a move likely to worsen already poor ties with Washington.

China claims self-ruled and democratic Taiwan as its own and has never renounced the use of force to bring it under Beijing's control. China regularly calls Taiwan the most sensitive issue in its relations with the United States.

Last week, the Pentagon said the US State Department had approved the sale of the weapons requested by Taiwan, including 108 General Dynamics Corp M1A2T Abrams tanks and 250 Stinger missiles, which are manufactured by Raytheon.

China said on Friday it would sanction US companies selling weapons to Taiwan but did not elaborate.

The latest deal involves $2.2 billion worth of tanks, missiles and related equipment for Taiwan.

Chinese Foreign Ministry spokesman Geng Shuang said the arms sales were a violation of international law and harmed China's sovereignty and national security.

"China's government and Chinese companies will not cooperate or have commercial contacts with these US companies," he told a daily news briefing.

"I can't reveal the details at the moment. But believe this - Chinese people always stress standing by their word."