It recommends Congress conduct an in-depth assessment into Chinese cyber espionage practices. It says state-sponsored actors continue to exploit U.S. government, military, industrial and nongovernmental computer systems and that "Chinese exploitation capabilities are improving significantly."
China is also advancing its military modernization efforts, with development of advanced fighter jets, and space and ballistic missile programs, the report says, a strategy it views as aimed at restricting the ability of U.S. forces to operate in the vicinity of China, particularly in the event of a conflict over the self-governing island of Taiwan.
The report also notes significant improvements in China's nuclear forces and says within two years it will perhaps have attained three ways of delivering such weapons — by bombs, land-based missiles and submarine-launched ballistic missiles. It voices concerns over "occasional disconnects" between China's civil and military leadership, introducing uncertainty about China's command authority of its nuclear weapons.
In Beijing, the Chinese Foreign Ministry accused the commission of "indulging in cold war mentality."
"We hope they will stop their prejudice, respect facts and stop interfering in China's internal affairs and hurting China-U.S. relations," Foreign Ministry spokesman Hong Lei said Wednesday.
On the subject of cyber security, Hong said, "China is firmly opposed to cyber attacks and has enacted laws on this issue."
"China believes the issue should be dealt with by cooperation on an equal footing. In fact, China and the U.S. have already started cooperation in cyber security," Hong said, adding that the report "does not help" that cooperation.
Associated Press writer Louise Watt in Beijing contributed to this report.