China is suspending cooperation with the US in a number of crucial areas, including efforts to combat global crime, military negotiations, and climate change.
The fresh actions come after a legislative delegation from the US visited Taiwan under the leadership of prominent Democrat Nancy Pelosi.
The visit is seen as a threat to China's claims of sovereignty over Taiwan, according to the country, which also said it was punishing Ms. Pelosi and her family.
The autonomous island views itself as separate from the mainland.
China's foreign ministry announced the restrictions on Friday. It stated that discussions between the US and Chinese defense officials would no longer take place, along with a suspension of cooperation on the deportation of illegal immigrants, addressing climate change, and looking into international crimes.
In recent years, the two great nations have maintained friendly diplomatic relations over the need of addressing climate change. China promised to cooperate "with haste" with the US to reduce emissions at the Glasgow climate summit last year.
The nations have also come together on occasion to battle the trade in dangerous narcotics like fentanyl.
Because Ms. Pelosi visited Taiwan "in violation of China's strong disapproval and serious representations," the Chinese government stated in a statement, that the decision to cease cooperation was made.
The US delegation, including Ms. Pelosi, the highest-ranking US politician to visit the island in 25 years, was also accused of engaging in "egregious provocations," according to the statement.
New lows in relationships
John Sudworth, a former Washington reporter for Beijing, provides analysis
There aren't many instances that better illustrate how quickly and how much the political environment is changing internationally. The Beijing declaration denotes a new low in the pivotal strategic alliance of our time.
A few years ago, it was generally agreed upon that an existing superpower should forge close economic and business links with a just developing one. Then, the ideological divides would disappear.
Instead, China has become increasingly autocratic at home and belligerent abroad, while becoming the world's factory and being tightly interwoven into global supply systems.
For instance, there was no resistance to Newt Gingrich's 1997 visit to Taiwan as the US House Speaker.
Missiles fired in response to Nancy Pelosi's visit were launched straight over democracy and the 24 million people who live there, whose interest in China's concept of rapprochement is waning as it grows more authoritarian.
The impact of these shifting geopolitical plates will now be felt by every American citizen concerned about the effects of Chinese precursor chemicals, which were sold into Mexico and later converted into the fentanyl that is responsible for thousands of fatalities in the US.
The Chinese announcement halts anti-drug cooperation.
As a result of the requirement that its claims to Taiwan be recognized, China's rhetoric about a "shared future for mankind" on climate change has also been shelved.
China could have received the excuse from Nancy Pelosi. However, the transition was well underway before this. The struggle over values is once again front and center, and the enormous difficulties it poses for the current international system are only certain to grow.
Despite not recognizing Taiwan formally, the US nevertheless has good connections with the island, including supplying Taiwanese defense equipment.
Currently finishing off an Asia tour in Japan, Ms. Pelosi declared on Friday that China "will not isolate Taiwan by barring us from travelling there."
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In addition, he denounced China's extensive military drills that they launched on Thursday near the island in reaction to Ms. Pelosi's visit.
Beijing is now conducting military exercises over the island in the air and water, and they are scheduled to go until Sunday.
The live-fire drills involved more than 100 aero planes and 10 vessels, several of which seemed to violate the unofficial buffer zone between China and Taiwan.
Chinese official media claims that at least one ballistic missile has passed directly over the island.
The current exercises have been denounced by Taiwan's foreign ministry as "extremely provocative conduct," however it has neither verified nor disputed whether that is the case.
There is "no basis for this severe, disproportionate, and escalatory military reaction," US Secretary of State Antony Blinken stated on Friday.
China's escalation was deemed "irresponsible" by the White House, which summoned China's ambassador to Washington.
Strategic communications coordinator for the National Security Council, John Kirby, said in a statement that the White House has made it clear that the US "is ready for whatever Beijing decides. We won't look for or desire a catastrophe."
Basics about China and Taiwan
Why are ties between China and Taiwan so bad?
The autonomous island is considered to be a part of Chinese territory, and China argues that it should be united with the mainland, using force if necessary.
Who is in charge in Taiwan?
The island has its own constitution, democratically elected officials, and an armed forces with roughly 300,000 active members.
Who acknowledges Taiwan?
Taiwan is recognized by only a few nations. Instead, Beijing is where most people recognize the Chinese government. Although the US has no diplomatic relations with Taiwan, a law mandates it to give the island the tools to defend itself.
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