NEW YORK - Foreign Minister Yang Jiechi at a business luncheon on Thursday criticized the US' recent decision to sell weapons to Taiwan, urging the United States to "correct its mistake", "immediately revoke the wrong decision" and consider the larger interests of China-US relations and peace and stability in the region.

"It (the US' decision) seriously undermines China-US relations, China's security and our endeavor to achieve peaceful unification," Yang said.

He urged the US to stop selling arms to Taiwan and to abstain from military contact.

"China urges the United States to fully recognize that US arms sales to Taiwan is a highly sensitive and harmful decision," he said.

Yang's speech at a business luncheon in New York was organized by the National Committee on US-China Relations and the US-China Business Council and was attended by several dozen business leaders from both countries.

Yang said the decision has "gravely violated the principles of the three Sino-US joint communiques, particularly the August 17 Communique" - a statement made by both the US and China in 1982 reaffirming the desire of both sides to further strengthen economic, cultural, educational, scientific and technological ties.

"We should cherish cooperation, as it embodies the important common interests of our two countries," Yang said.

"When it comes to major issues concerning China's sovereignty, security and development interests, the US should aim to prevent interference and setbacks to China-US relations," he said.

Yang's meeting with US Secretary of State Hillary Clinton after the launch of the Global Counterterrorism Forum on Thursday morning was postponed to Monday morning. Yang is scheduled to speak at the UN General Debate on Monday afternoon.

Earlier this year, China and the US had increased military exchanges with senior US defense officials.

In May, former US defense secretary Robert Gates and Chairman of Joint Chiefs of Staff Mike Mullen visited China, which was followed by a reciprocal visit to the US by Chief of the General Staff Chen Bingde.

Also in May, Chinese and US military bands performed together for the first time in Washington DC and the UN General Assembly Hall in New York to strengthen the friendship between the two nations.