Despite China objection, the USA have made a decision to sell fighter aircraft F-16 to Taiwan.
The latest weapons deal is not the first USA attempt to arm Taiwan.
Pompeo said the F-16 sale is "consistent with past USA policy" and "deeply consistent with the arrangements, the historical relationship between the United States and China".
A semi-annual defense ministry report issued last month stated that China "has the firm resolve and the ability" to take control of Taiwan.
Urge the USA to "immediately cancel the aforementioned arms sales plan, cease arms sales to Taiwan and sever military ties with the island".
"China will take all necessary measures to safeguard our interests including imposing sanctions on the United States companies participating in this arms sale to Taiwan", foreign ministry spokesman Geng Shuang told a news briefing. Many Chinese neighbours are very concerned about Beijing's military armament.
China has been stepping up military, diplomatic and economic pressure against the administration of Taiwanese President Tsai Ing-wen, who has refused to embrace Beijing's "one-China principle" that regards Taiwan as Chinese territory.
Bloomberg News pointed out that the F-16V variant that will be sold to Taiwan is a significant improvement over its existing fleet of older fighters, but the US decided not to sell the even more advanced F-35 fighter to Taiwan.
The US government has approved the possible $8bn (£6.6bn) deal involving 66 aircraft, the biggest in decades. He stressed the deal's symbolism.
The US has generally tried to play down the technological capabilities of the weapons it sells Taipei.
The approval of the sale comes as Washington and Beijing face off in tough trade negotiations that economists say are hurting both of the superpowers, as well as dragging down the global economy.
"Due to China's superiority, the U.S. would not need to downplay the capability as it did in the past", he said, adding that the level of backlash from Beijing depended largely on whether the United States decides to include offensive weapons that could potentially be used to attack China, rather than simply defend the island.