The report issued last week by the US-China Economic and Security Review Commission warned that China was sharply stepping up espionage against the United States and becoming more sophisticated in recruiting spies.

"The report takes no regard of the true situation. It is full of prejudice, and out of ulterior motive," foreign ministry spokesman Qin Gang said in a statement.

"We urge the so-called commission not to see China through coloured lens and not to do things that interfere with China's internal affairs and undermine China-US relations."

In its wide-ranging annual report to Congress, the commission reported a steep rise in the disruption and infiltration of websites of the US government and perceived Beijing rivals such as Tibet's exiled leader the Dalai Lama.

"China is changing the way that espionage is being done," commission chair Carolyn Bartholomew said in the report issued a day after US President Barack Obama wrapped up his first official visit to China.

The bipartisan commission found that China was the most aggressive nation in spying on the United States and was trying to recruit more American spies.

While China historically tried to tap Chinese Americans -- believing, often incorrectly, that they would be sympathetic -- it was now turning to the Soviet model of seeking to bribe informants with cash and gifts, the report said.

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