China Rejects Pentagon's Cyberwarfare Accusations

(Reuters) – China is using espionage to acquire technology to fuel its military modernization, the Pentagon said on Monday, for the first time accusing the Chinese of trying to break into U.S. defense computer networks and prompting a firm denial from Beijing.

In its 83-page annual report to Congress on Chinese military developments, the Pentagon also cited progress in Beijing's effort to develop advanced-technology stealth aircraft and build an aircraft carrier fleet to project power further offshore.

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