The. U.S. will definitely suffer a serious blow in its diplomatic row should the government decides to push through its plan to sell military defense aircraft to Taiwan, analysts and Chinese government officials said in a news briefing.

China has threatened that sale of military-related and warfare equipment by the U.S. to Taiwan will definitely damage the Sino-U.S. relations and Cross-Straits ties, Vice-chairman Zhou Tienong of China's top legislature told media on a press briefing on Monday.

The U.S. congress is expected to decide this week on the status of Taiwan's request for 66 F-16 C/D fighters in 2007. An official of President Barack Obama's administration leaked to media that the U.S. President may deny the sale of F-16 models and C/D fighters but may authorize the upgrade of Taiwan's F-16 A/B model.

Beijing issued a warning against the U.S. of austere consequences if the latter proceeds with the transaction. A Chinese financial news Web site caixum.com said Beijing will deem it a gross intervention in China's internal affairs should the U.S. government disregards the said warning.

A Chinese analyst who spoke on a condition of anonymity because he is not authorised to speak told The Washington Times that the U.S. economy will suffer as China may taper off the liquidation of its enormous U.S. treasury bonds.

Bonnie Glaser, an expert of China's Center for Strategic and International Studies stated to China Daily that the exchange of military assistance between these two giant economies will again be intercepted to U.S.'s disadvantage.

"I certainly expect that we will see a reaction from China and we will see suspension of some military exchanges," Glaser told China Daily.

In January 2010, Beijing curtailed its military ties with the U.S. to squawk on the U.S. $6.4-billion sale of patriot missiles, black hawk helicopters and other equipment to enhance Taiwan's F-16 fleet.

In a related report, senior researcher at Tsinghua University, Tao Wenzha said in AP and AFP reports of the U.S. arm sale and said it is incompatible with the peaceful cross-Straits situation, which allows Taiwan to maintain good economic ties with mainland China.

The enthusiasm on the part of the U.S. in selling arms to Taiwan has spurred tension between China and the U.S. It has also put the cross-Straits relations among the countries involved in a turmoil.