China`s defence ministry warned on Wednesday thatit was ready for war if there was a move toward Taiwan`s independence, accusingthe United States of undermining global stability and denouncing its arms salesto the self-ruled island. This month, the Pentagon said the U.S. StateDepartment had approved sales of weapons requested by Taiwan, including tanksand Stinger missiles estimated to be worth about $2.2 billion.

China responded by saying it would impose sanctions on U.S.firms involved in such a deal.  Chinawould make its greatest effort for peaceful reunification, defence ministryspokesman Wu Qian said.

"However, we must firmly point out that seeking Taiwanindependence is a dead end," Wu told a news briefing on a national defencewhite paper, the first in several years to outline the military`s strategicconcerns.