Chinese experts say continued US arms sales to Taiwan could spark military confrontation between China and the United States.
Tensions with Beijing have increased since a US offer this week of submarines, destroyers and aircraft for Taiwan.
George W Bush also said Washington may use military force to defend the island from Chinese attack.
China and Taiwan split amid civil war in 1949. But China still views the island as part of its territory and has not ruled out using force to get it back.
Mr Bush's comments may have worried Chinese leaders that he was scrapping Washington's past ambiguity over whether it would use force to defend Taiwan, said Joseph Cheng, a China scholar in Hong Kong.
But Beijing's response will be tempered by its limited options and desire to maintain peace with its neighbours, he added.
The most likely Chinese response would be to sever co-operation with Washington on curbing the spread of missiles and other weapons technology, he said.