Foreign ministry spokesman Liu Jianchao said it could also hurt Sino-US ties.

"Whatever excuse or method the US side uses to develop military relations with Taiwan violates the principles of the three Sino-US joint communiques, will encourage Taiwan separatist activities and harm peace and stability in the Taiwan region as well as China-US relations," Liu told a regular briefing.

China also demanded the US side stop selling weapons to Taiwan and end contacts with its military.

The American Institute in Taiwan (AIT), which handles civil exchanges between Washington and Taiwan in the absence of diplomatic ties, on Tuesday confirmed it will use serving military officers -- instead of retired officers working as contractors -- to coordinate defence assistance to Taiwan.

"Non-uniformed, active-duty military and Department of Defense civilian personnel will now replace these contractors," AIT's spokeswoman Dana Smith said.

But Smith added that "our policy towards Taiwan has not changed," saying the move was simply to promote administrative efficiency in personnel matters.

China claims Taiwan as part of its territory and has vowed to invade if the island, which has been ruled separately since 1949, formally declares independence.

It opposes US military exchanges with Taiwan.

Washington has remained the leading arms supplier to Taiwan despite switching diplomatic recognition to China 25 years ago and is obliged by law to offer the island a means of self-defence if its security is threatened.

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