Beijing, for the first time, has threatened sanctions against the companies that are involved in the sale. The deal includes 60 Sikorsky UH-60M Black Hawk helicopters that are powered by GE engines, and Harpoon missiles that are manufactured by Boeing.
The sale was not unexpected - and it has not included the F-16s that Taiwan covets.
China's opposition was not unexpected either, but the extent to which it may go to protest the decision could have implications in the wider aerospace industry. Boeing, Sikorsky and GE all have long-standing commercial links with the mainland, and have said that it is a key part of their growth strategy in the coming years.
Expect this to unfold further in the coming weeks, and we will try to get a reaction from the companies at the Singapore Airshow.