FIRST AIRED: September 27, 2018

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>> They're already butting heads over a trade war, but a new US arm sale to Taiwan may spark more friction between the US and China. On Monday, the State Department approved a $330 million sale covering spare parts for fighter jets like F-16s. Beijing isn't happy about it and on Tuesday, it warned the deal could put a wedge between the US and China if Washington goes through with it.
> US arm sales to Taiwan are a serious breach of international law and harm Chinese sovereignty and security interests.>> China claims self-ruled Taiwan as its territory and US military sales to Taipei has long been a thorn on Beijing's side. But as Reuters' Ben Blanchard reports, for Beijing, this latest sale couldn't have come at a worse time.
>> From the Chinese perspective this just comes, it's one thing after another, this comes in the middle of the trade war getting worse and worse. It comes after the US put sanctions on the Chinese military for buying Russian equipment. And it certainly looks from Beijing's perspective like Washington was doing this intentionally, using it as another stick with which to beat Beijing
>> China's top diplomat Wong Yee warned against US-China competition on Tuesday, saying that the two shouldn't view each other with a Cold War mentality. But on that same day, China denied a request for a US war ship to visit Hong Kong, and the government didn't directly answer a question as to why.
>> But I've made it clear our trade imbalance is just not acceptable.>> Meanwhile, US President Donald Trump once again, railed against Beijing on trade during his speech to the UN on Tuesday.>> As my administration has demonstrated, America will always act in our national interests.>> The next day, Chinese state media accused him of challenging Beijing on both economic and military fronts saying, China's prepared for the worst