The annual China report to Congress of the US-China Economic and Security Review Commission was aimed at misleading the public and impeding bilateral cooperation, foreign ministry spokesman Qin Gang said.

"The commission has all along seen China through dark glasses and has deliberately attacked China with slanderous accusations aimed at misleading public opinion and obstructing the development of Sino-US relations," Qin said.

"The report is unworthy of rebuttal and the aims of the commission are doomed to failure," he said in a statement on his ministry's website.

The report issued in Washington Thursday accused China of developing a sophisticated cyber warfare programme aimed at penetrating US computer networks to extract sensitive information.

"China has an active cyber espionage programme," the report said.

"China is targeting US government and commercial computers."

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

The commission also issued a warning about China's space programme. "China continues to make significant progress in developing space capabilities, many of which easily translate to enhanced military capacity," it said.

Qin urged the commission to stop issuing such reports and refrain from interfering in China's internal affairs.

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