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U.S. Accuses China Of Cyberespionage

A Pentagon report has accused the Chinese government and its military of using cyberespionage against U.S. computer systems. "China is using its computer network exploitation capability to support intelligence collection against the U.S. diplomatic, economic and defense industrial base sectors that support U.S. national defense programs," said the report, prepared for Congress.

China has moved swiftly to deny the claims, with the Ministry of Foreign Affairs calling their defense building "legitimate," while reiterating it is against "any forms of cyberattacks."

The code war between China and the U.S has been going on for some time, but this is the first time an official report has accused China's authorities directly. Earlier this year, the White House asked China to stop attacking U.S. firms, such as the New York Times, and the Wall Street Journal.

This year's report is more detailed than than previous ones, and it divulges Chinese investment in new military hardware, including Navy ships, fighter planes and defense systems.