Prime Minister Vladimir Spidla told CTK Czech news agency that it was not in his country's interests to conclude the sale.

The decision was taken on Wednesday in a closed-door ministerial session, and ministries were ordered to revoke the export license needed for the sale.

The company Omnipol was granted the export license in January by the ministry of industry and trade.

The move comes days after a press report here said the United States was ready to bid on the Vera radar system in order to keep it from falling in the hands of the Chinese.

The radar system is an updated version of the Tamar system which was reportedly used by Serb forces to shoot down a US F-117A stealth fighter in March 1999.

Czech media say Washington has repeatedly expressed its concern over the granting of a Czech export license for the Chinese deal, said to be worth about 1.5 billion korunas (47 million euros, 56 million dollars).

The sale was also criticized by some Czech parties, in particular the Freedom Union (US-DEU), a member of the ruling coalition.

A government spokeswoman questioned by AFP declined to comment on the matter on Thursday.

WAR.WIRE