"The report unreasonably attacks the modernisation of Chinese national defence and rudely castigates China's normal national defence constructions and military deployment," Vice Foreign Minister Yang Jiechi said in a statement.

"The report overlooks facts, endeavours to spread the 'China threat theory', rudely interferes with China's internal affairs and foments discord between China and other countries," the statement said.

It said Yang has made serious representations to David Sedney, deputy chief of mission at the US embassy.

"The Chinese side is expressing dissatisfaction and its firm opposition."

The annual Pentagon report released Tuesday said China is building up its military at a pace that is tipping the balance against Taiwan and could pose a credible threat to other armies in the region.

It said Chinese defence spending was estimated at up to 90 billion dollars this year, the largest in Asia and number three in the world after the United States and Russia.

Yang argued that the growth in defence spending was mainly to improve the living conditions of personnel. He said China has always adopted a defensive military policy and has consistently promoted peace and stability in Asia.

"Last year, China's total defence spending was about 25.579 billion US dollars while the United States' defence was as high as 455.9 billion US dollars, that's 17.8 times that of China's," the former Chinese ambassador to the United States argued.

"In what way is the United States qualified to point fingers and make irresponsible comments on China's defensive national defence policy?"

The Pentagon report detailed China's efforts to increase its ballistic missile strength and modernize its conventional forces, with acquisitions from Russia and other countries of advanced fighter aircraft, warships, submarines, precision weapons and computerized information systems.

It said China has deployed 650-730 mobile short-range ballistic missiles opposite Taiwan and is adding about 100 missiles a year. Newer missiles have improved range and accuracy.

Yang said China will not let other countries interfere in its domestic affairs, adding that Taiwan is an "inseparable part of China" and that it is already making the "greatest efforts" to seek peaceful reunification.

He called on the US to stop selling arms to Taiwan and sever its military links with it for the sake of stability across the Taiwan Strait.

China and Taiwan split in 1949 amid a civil war, but Beijing regards Taiwan as a renegade province and has long said that a formal declaration of independence would lead to war.

"The United States should value the progress made in recent years in China-US relations, do more things that will benefit the healthy and stable development of China-US relations, and not create troubles in the bilateral relations," Yang added.

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