Chinese shares fell on Thursday as the country and Russia failed to clinch a major gas deal and the U.S. signaled its intent to talk with Taiwan.

The Shanghai Composite Index, the main gauge of Chinese stocks, plunged 2.0% to 4,077.28. The Shenzhen Component Index dropped 2.1% to 15,247.27.

Russian President Vladimir Putin left China without any notable progress on a Russia-to-China natural gas pipeline project.

After years of Russian efforts to finalize an agreement, the proposed Power of Siberia 2 pipeline remains held up by unresolved issues. Key terms such as pricing mechanisms and volume flexibility remained unsettled.

U.S. President Donald Trump said he would speak with Taiwanese President Lai Ching-te and work on the issue surrounding Taiwan. Beijing has been at odds with the self-governed island in a bid to fully take control of the territory.

Chinese President Xi Jinping previously warned the U.S. that "mishandling" the Taiwan issue could lead to conflict.

In company news, The U.S. Department of Justice charged China International Marine Containers (SHE:000039), or CIMC, and several of its executives with price-fixing standard, unrefrigerated shipping containers. Shares of the container manufacturer fell 4% Thursday.