U.S. regrets China's response to arms sales WASHINGTON/BEIJING (Reuters) - The United States said on Saturday it regretted China's announced cuts in bilateral contacts and its plans to punish U.S. companies involved in a $6.4 billon arms package for Taiwan. China threatens U.S. with sanctions over Taiwan arms BEIJING (Reuters) - 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 signaling Beijing's growing global power. China suspends military exchanges with US BEIJING - China suspended military exchanges with the United States and threatened sanctions against American defense companies Saturday, just hours after Washington announced $6.4 billion in planned arms sales to Taiwan.