[Who will clothe our troops?] 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.

The development has further strained the complex relations between the two powers, which are increasingly linked by security and economic issues.

China's Defense Ministry said the sales to self-governing Taiwan, which the mainland claims as its own, cause "severe harm" to overall U.S.-China cooperation,