China accuses U.S. of military fear-mongering

BEIJING (Reuters) - China's top official newspaper on Thursday accused the United States of exaggerating fears about Beijing's military to justify its weapons sales to Taiwan, continuing verbal push-and-shove between the two powers.

The Pentagon's annual report on Chinese military power released this week said China was developing weapons to cripple its foes' space technology and also linked intrusions into computer networks worldwide to Beijing.

U.S. Defense Secretary Robert Gates said on Wednesday that China had not been clear about the intent behind its growing military spending, which is budgeted to rise 17.6 percent rise this year from 2007, reaching 417.769 billion yuan ($58.76 billion).

The U.S. annual defence budget remains more than eight times larger than China's official number, but Western experts believe China's true military spending could be triple the official budget.

China has already denounced the Pentagon report as unfounded, and now the People's Daily, the official paper of the ruling Communist Party, has continued the verbal brawling.

"The report uses a great deal of verbiage to exaggerate China's abilities in space," a commentary in the paper said.

The United States earlier this year rejected a proposal from China and Russia for a pact to prevent a military race in space, and then last month it used a missile to smash one of its own faulty spy satellites from the skies, the paper said.

China used a missile to blow up one of its own satellites early last year.

The Pentagon report also pointed to a growing military gap between China and Taiwan, the self-ruled island Beijing claims as its own and says must accept reunification, by force if necessary.

"These cliches turn up in the U.S. Defense Department report on Chinese military capabilities every year, and their chief objective is to concoct an excuse for continued (U.S.) weapons sales to Taiwan," said the People's Daily.

The United States switched diplomatic recognition from Taiwan to China in 1979, recognising "one China", but is obliged by the Taiwan Relations Act to help the island defend itself.

China had made a positive contribution in responding to international crises over North Korea, Iran and Sudan's Darfur region, the paper added.

"Clearly, China is playing an important role in stabilising the region and maintaining world peace," it said.

(Reporting by Chris Buckley; Editing by Nick Macfie)