US President Joe Biden ordered the object be brought down, with a defence official saying it was a spy balloon that China intended to use on sensitive military sites.
But Chinese officials insisted it was a meteorological and scientific research device that had been blown off course.
‘Obvious overreaction’
In a statement on Sunday, Beijing’s foreign ministry said: “China will resolutely uphold the relevant company’s legitimate rights and interests, and at the same time reserving the right to take further actions in response.”
Mr Biden’s order was an “obvious overreaction” that “seriously violated international conventions”, it added.
The balloon was shot down by an F-22 fighter aircraft, about six nautical miles off the coast of South Carolina, near Myrtle Beach, with ships deployed in the water to mount the recovery operation.
It had flown over the Aleutian Islands, off the coast of Alaska, and through Canadabefore entering the US.
But Mr Biden said he was advised to wait until it was over water because of the risks of falling debris.
“They successfully took it down and I want to compliment our aviators who did it,” he said on Saturday.
Ahead of the operation, flights were halted at three airports including Myrtle Beach International Airport due to a “national security effort”, the Federal Aviation Administration said.
The operation to down the balloon caught the attention of people on the ground.
Some, including local Peter Flynn, pictured above, gathered on Myrtle Beach to watch the aircraft being fired upon, while others were caught more off guard.
“I did not anticipate waking up to be in a Top Gun movie today,” said Ashlyn Preaux, who saw fighter jets circling the balloon from her home in Forestbrook, South Carolina, before it went down.
It had been flying between 60,000ft and 65,000ft.
What happens next?
US officials want to recover debris from the downed balloon, which is spread out over seven miles.
The US Coast Guard, Navy, and FBI are all involved in the recovery effort, with divers and unmanned submarines expected to comb the sea floor over the next few days.
Sky’s US correspondent Mark Stone said: “The aim will be to harvest a potential goldmine of information”, with investigators likely hoping to reconstruct the balloon’s payload and learn from it.
CHINA MAY FEEL PRESSURE TO RESPOND AS US RELATIONS HEAD FOR COLD WAR-STYLE STAND-OFF
Be in no doubt that the shooting down of the spy balloon is an escalation.
It’s an escalation the Americans no doubt felt they had no option but to take, but one that will be hard for both sides to row back from.
If the Chinese response initially had been relatively apologetic, speaking of “regret” that what it described as a weather balloon had “accidentally” ended up in US airspace, their tone now is significantly angrier.
It is part of the Chinese play book to simply deny. Even if the Americans say they can prove from the gathered debris that the balloon was spying, expect accusations that the claims are being made to “smear” China.
The problem is that just as the US will have felt pressure to shoot, the Chinese may feel pressure to take some form of retaliatory action, especially if it sticks to the line that this was a civilian craft.
There has already been a large diplomatic cost for seemingly very little intelligence gain, many experts have weighed in saying such a balloon is unlikely to have learned more than what could be gathered from satellites.
Perhaps the intention was to provoke or test the limits, but whatever it was, tit-for-tat actions become hard to avoid in a relationship slowly sliding towards a Cold War-style stand-off.
Recent overtures on both sides that they should work to prevent the relationship deteriorating further feel a long way off this morning
The row between the two superpowers over the balloon’s objective comes at a sensitive time for their relationship, which has been on rocky ground for years.
It prompted US secretary of state Antony Blinken to abruptly cancel a trip to Beijing, which would likely have taken huge amounts of diplomatic effort on both sides to organise.
The US Supreme Court has rejected a last-ditch attempt by Donald Trump to delay sentencing in the Stormy Daniels hush money case.
The president-elect was convicted on 34 counts last May in New York of falsifying business records relating to payments made to Ms Daniels before the 2016 presidential election.
Prosecutors claimed he had paid her $130,000 (£105,300) in hush money to not reveal details of what Ms Daniels said was a sexual relationship in 2006.
Mr Trump has denied any liaison with Ms Daniels or any wrongdoing.
By a majority, the Supreme Court found his sentencing would not be an insurmountable burden during the presidential transition since the presiding judge, Juan M Merchan, has indicated he will not give Mr Trump jail time, fines or probation.
Mr Trump’s attorneys argued that evidence used in the Manhattan trial violated last summer’s Supreme Court ruling giving Mr Trump broad immunity from prosecution over acts he took as president.
At the least, they said, the sentencing should be delayed while their appeals play out to avoid distracting Mr Trump during the presidential transition.
Mr Trump’s attorneys went to the justices after New York courts refused to postpone sentencing.
Judges in New York found that the convictions related to personal matters rather than Mr Trump’s official acts as president.
Mr Trump’s attorneys called the case politically motivated, and they said sentencing him now would be a “grave injustice” that threatens to disrupt the presidential transition as the Republican prepares to return to the White House.
Mr Trump has said he will appeal again: “I respect the court’s opinion – I think it was actually a very good opinion for us because you saw what they said, but they invited the appeal and the appeal is on the bigger issue. So, we’ll see how it works out,” he said at a dinner with Republican governors at his private club in Florida.
Because the New York case was a state, rather than federal crime, Mr Trump will not be able to pardon himself when he takes office on 20 January.
Hollywood celebrities are among thousands of people who have been evacuated in Los Angeles, some fleeing homes now burned to the ground.
Paris Hilton and actor Billy Crystal have both lost their houses as fires rip through parts of California, including exclusive suburbs home to film stars and billionaires.
Oscar-winning songwriter Diane Warren, talk show host Ricki Lake, actor Cary Elwes, and reality stars Spencer Pratt and Heidi Montag have also confirmed their homes have been destroyed.
US media is reporting that Eugene Levy, and Adam Brody and Leighton Meester, have lost their homes. The stars are yet to confirm this.
Sky News’ US correspondent Martha Kelner reported that Tom Hanks, Ben Affleck and Reese Witherspoon were among those evacuated.
The blaze in Pacific Palisades, a hillside area between Santa Monica and Malibu dotted with celebrity homes, is one of at least five raging in California.
Thousands of firefighters are trying to contain the flames, with a new fire breaking out overnight in the Hollywood Hills, threatening a host of tourist sites including the Walk Of Fame.
‘The loss is overwhelming’
Hilton said she was “heartbroken beyond words” to see her Malibu home, where she has brought up her young children Phoenix and London, “burn to the ground on live TV”.
In a post on social media, she said: “This home was where we built so many precious memories. It’s where Phoenix took his first steps and where we dreamed of building a lifetime of memories with London.
“While the loss is overwhelming, I’m holding onto gratitude that my family and pets are safe.”
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In a joint statement, US actor Crystal, known for films including When Harry Met Sally and Analyze This, and his wife Janice confirmed their home of 46 years was gone.
“Words cannot describe the enormity of the devastation we are witnessing and experiencing,” the couple said.
They added: “We raised our children and grandchildren here. Every inch of our house was filled with love. Beautiful memories that can’t be taken away.”
The Hills stars Pratt and Montag documented the escalation of the fire at their home on Snapchat, with Pratt saying: “I’m watching our house burn down on the security cameras.”
“I talked to my neighbour last night and she told me that [Palisades Charter High School] had burnt down, and that’s directly behind me, and so had Gelson’s Supermarket which is adjacent,” she said.
“I just can’t reach anyone to see if my house is okay. I just Googled it and it said that it’s destroyed and terrible… I don’t know if my house is there.”
Jamie Lee Curtis confirmed her home was safe but said “our beloved neighbourhood is gone” as she shared videos of the blaze on her Instagram.
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Writer and actor Steve Guttenberg told Sky News he witnessed panic attacks and despair as he tried to help residents as the flames closed in.
The Police Academy star said: “There were mothers trying to find their kids.
“There were panic attacks. It was terrible. And that’s when the fires just lit up.”
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8:50
Guttenberg calls on national guard
Other celebrities who have fled their properties include the award-winning actor James Woods, who said he had been safely evacuated from his home in Pacific Palisades.
But he added in a post on X: “I do not know at this moment if our home is still standing.”
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Actor Mark Hamill, best known for playing Luke Skywalker in the Star Wars films, also posted on social media on Wednesday saying he evacuated his home in Malibu and his family were “fleeing for our lives”.
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This Is Us actress Mandy Moore was also forced to leave her home with her children and pets, saying on Instagram they had found temporary refuge with friends.
The actress said: “Trying to shield the kids from the immense sadness and worry I feel.
“Praying for everyone in our beautiful city. So gutted for the destruction and loss. Don’t know if our place made it.”
According to Velvet Ropes, which maps celebrity properties, Matt Damon, Steven Spielberg, Hilary Swank and Sally Field all have homes close to where fires are raging.
Dr Dre, Tyra Banks, Martin Short, Anna Faris, Milo Ventimiglia, Linda Cardellini, Mary McDonnell, Adam Sandler, Miles Teller, and Jennifer Love Hewitt are also said to have houses in affected areas.
In neighbouring Malibu, which was also affected by fires in December, stars including Beyonce and Jay-Z, Kim Kardashian, Lady Gaga and Billie Eilish are said to be among the celebrity residents.
The Palisades blaze has already burnt through nearly 16,000 acres of land, while the Eaton fire, covering over 10,000 acres, has caused the death of five people.
Three other fires, the Hurst fire, Lidia fire and Sunset fire, are all raging as emergency services battle to bring them under control.