US warns of China 'cyber-spying'

There are concerns that China has been accessing sensitive US databases

China has stepped up computer espionage against the US government and American businesses, according to a Washington congressional panel.

In its annual report to Congress, the panel warned that China was gaining increasing access to sensitive information from US computer networks.

It said China was aggressively pursuing cyber-warfare capabilities to gain an advantage over the US in any conflict.

There has been no comment so far from the Chinese on the report.

The US-China Economic and Security Review Commission was set up by Congress in 2000 to advise, investigate and report on US-China issues.

Its report said the US government and economy were critically vulnerable to cyber-space attack since both depended heavily on computers and the internet.

China is stealing vast amounts of sensitive information from US computer networks Larry Wortzel commission chairman

The panel of six Democrats and six Republicans said China would continue to target the US using cyberspace as it was cheaper than traditional espionage activities.

Another advantage, they say, is that determining who infiltrated computer networks is often difficult to establish.

"China is stealing vast amounts of sensitive information from US computer networks," said Larry Wortzel, chairman of the commission.

His panel recommended that lawmakers provide funds for US government programmes - including those run by the military and homeland security - that would monitor and protect sensitive information held on computer networks.

The Chinese authorities have not so far commented on the Commission's findings.

But officials in Beijing have responded to past reports by saying China does not try to undermine other countries' interests and seeks healthy ties with the US.