China denies 'cyber spying'

22/11/2008 16:22:48

China has reacted angrily to a US congressional report which accuses Beijing of misusing its huge foreign currency reserves and engaging in cyber spying.

The US-China Economic and Security Review Commission says China is developing a sophisticated cyber warfare programme, aimed at extracting sensitive information.

It also claims Beijing is using its nearly two-trillion U-S dollars in foreign exchange reserves to seek political and economic influence over other nations.

The panel criticised Beijing for exercising "heavy-handed government control" over its economy and "continuing arms sales and military support to rogue regimes" such as Sudan, Burma and Iran.

However, China's foreign ministry says the report is aimed at misleading the public and impeding bilateral cooperation.

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