"As for reports that this plan will be devoted to military use, I think this kind of accusation is quite absurd and ridiculous," foreign ministry spokeswoman Zhang Qiyue told a regular briefing.

Galileo, a constellation of 30 satellites and ground stations due to go into operation in 2008, is being launched by the European Union and the European Space Agency to tap into a growing market of global satellite positioning.

China last month became a partner in the Galileo program, which could help provide services such as communications for the 2008 Beijing Olympics but also has applications for strategic military use.

Zhang was asked to comment on a report in British newspaper The Business Weekly on Sunday that the United States could attack the planned network if it was used by a hostile power such as China.

"I have taken note of relevant reports and I can say clearly that the Galileo plan between China and the EU is civilian," Zhang said.

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