China has decided to suspend talks with the U.S. on arms control and nuclear proliferation. The decision comes in response to the U.S.’ continued arms sales to Taiwan, a move that China strongly opposes.

What Happened: China’s foreign ministry announced on Wednesday that it would be suspending talks with the U.S. on arms control and nuclear proliferation. This decision was made in protest against the U.S.’ ongoing arms sales to Taiwan, an island that China considers its territory, reported The Guardian.

The U.S., a key ally and arms supplier to Taiwan, recently approved a $500 million military financing package for Taiwan, along with $2 billion in loans and loan guarantees. Additionally, $300 million in spare and repair parts for Taiwan’s F-16 fighter jets were also approved.

China’s foreign ministry spokesperson, Lin Jian, stated that despite “strong Chinese opposition and repeated negotiations,” the U.S. continued to sell arms to Taiwan. As a result, China has decided to put a hold on discussions with the U.S. on a new round of consultations on arms control and nonproliferation.

The U.S. State Department spokesperson, Matthew Miller, criticized China’s decision, stating that it “undermines strategic stability,” and increases the risk of “arms-race dynamics.” However, he also emphasized that the U.S. remains open to developing and implementing concrete risk-reduction measures with China.

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Why It Matters: The suspension of nuclear talks follows a series of escalating tensions between the U.S. and China over Taiwan. In June, China reportedly imposed sanctions on subsidiaries and senior executives of Lockheed Martin Corp. (NYSE:LMT) in response to U.S. arms sales to Taiwan.

Earlier in March, the U.S. and China reportedly engaged in their first informal nuclear talks in five years, where the Taiwan issue was prominently discussed. Chinese representatives assured their U.S. counterparts that they would not resort to nuclear threats over Taiwan, emphasizing their confidence in prevailing in a conventional conflict.

Additionally, in April, Chinese President Xi Jinping accused the U.S. of attempting to provoke China into invading Taiwan. Xi made these allegations during a meeting with European Commission president Ursula von der Leyen, stating that the U.S. was trying to trick China into a military confrontation with Taiwan.

Recently, comments by U.S. presidential candidate Donald Trump suggested that Taiwan should pay the U.S. for its defense, causing a significant drop in shares of Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) and other tech giants in Silicon Valley.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote