China warned the United States last week that there would be consequences for Washington’s warm reception for the visiting Dalai Lama.

Now payoff time has come. China has cancelled a visit late this month by Wu Bangguo, the titular No. 2 in the Communist Party and chairman of the National People’s Congress.

Wu would have been the most important Chinese dignitary to travel to Washington this year. Protocol officers in both capitals had spent months preparing events for the three-day visit.

What does the cancellation mean? From Washington's perspective, probably not much. Wu is on the Politburo Standing Committee, but doesn’t handle a portfolio of much apparent clout. From Beijing's perspective, it means a lot. No chairman of the NPC has visited the U.S. since Wan Li in 1989, nearly two decades ago

Beijing, meanwhile, has cancelled some international academic conferences involving American scholars. It still hasn’t said anything about nixing an upcoming visit by Defense Secretary Robert Gates.

The Dalai Lama, the exiled leader of Tibetan Buddhists, received the Congressional Gold Medal eight days ago in Washington at a high-profile event attended by hundreds of legislators and prominent movers and shakers.

While China glares at the United States, it may soon its attention to Canada. That’s where the Dalai Lama goes on his next foray.