"We will keep our defence exports to Turkey under very careful and continual review," Foreign Secretary Dominic Raab said in a statement to parliament.
"No further export licences to Turkey for items which might be used in military operations in Syria will be granted while we conduct that review."
Ankara's assault against Kurdish forces launched last week has prompted a chorus of international condemnation. Raab said it had "seriously undermined the security and stability of the region".
"This is not the action we expected from an ally, it is reckless, counterproductive, it plays straight into the hands of Russia and the Assad regime," he told lawmakers.
US slaps sanctions on Turkey, demands Syria ceasefire
Britain's arms sales suspension follows similar moves by key European and NATO allies, including Germany - one of Turkey's main arms suppliers -- and France.
Meanwhile, China on Tuesday called on Turkey to stop its military action in northern Syria and "return to the correct way of political resolution", with Ankara's operation against Kurdish militants in its seventh day.
"The sovereignty, independence, unification, and territorial integrity of Syria should be respected and upheld," Chinese foreign ministry spokesman Geng Shuang said at a regular press briefing.
"We call on Turkey to stop military action, and return to the correct way of political resolution."
Turkish President Recep Tayyip Erdogan said Tuesday that the operation would not stop until "our objectives have been achieved".
He said 1,000 square kilometres (385 square miles) of Syrian territory had so far been "liberated from the separatist terrorist organisation".
Turkey plans to establish a safe zone stretching across northern Syria, to which it can repatriate many of the 3.6 million Syrian conflict refugees that it is hosting.
Geng warned that the operation "may result in terrorists fleeing out, and the Islamic State may attempt to take the opportunity to stage a comeback".
"We urge the Turkish side to take responsibility and be side by side with the international community and jointly fight terrorism."
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