China on Friday dismissed a US report on its military  expansion as "completely groundless" and said it had exaggerated the  threat to Taiwan, the self-ruled island Beijing calls a breakaway  province.  The US defense department said in its annual report to Congress that  China was increasingly focused on naval power and had invested in  hi-tech weaponry that would extend its reach in the Pacific and beyond.  The report, released on Wednesday, also renewed US warnings that China  was extending its military edge over Taiwan, citing better artillery  that could strike targets within or even across the Taiwan Strait.  "The US report is totally and completely groundless," China's defence  ministry said in a statement faxed to AFP, adding that it had  "exaggerated the so-called mainland military threat to Taiwan".  "It's normal for China to develop its army and update its weaponry, a  common practice among other countries around the world," ministry  spokesman Yang Yujun added.  China considers Taiwan, where the mainland's defeated nationalists fled  in 1949, to be a province awaiting reunification, by force if necessary.  The defence ministry's comments came a day after China's state news  agency Xinhua said the Pentagon report amounted to US "interference" in  its affairs.  "The 94-page report, as usual, interferes with the internal issue of  China by making wilful comments on the situation across the Taiwan  Strait," said Xinhua.  "The Pentagon report, submitted to the Congress by the Pentagon annually  pursuant to a US law since 2000, has drawn protest from China over its  interfering nature, distortion of facts and baseless speculations."  The dispute over Taiwan, including US arms sales to Taipei, has remained  a stumbling block to Washington's attempts at promoting a security  dialogue with the Chinese military.  However Xinhua said relations between the US and Chinese militaries had  improved over the past year.  It cited a visit to China last month by US Joint Chiefs of Staff  Chairman Mike Mullen, America's top military officer. Mullen's Chinese  counterpart Chen Bingde visited the United States in May.  Yang said the US report "doesn't meet... with the current trend of a  positive development of military relations between the two countries,  nor with the good momentum of the peaceful development of cross-Strait  relations".  China's People's Liberation Army -- the largest active duty military in  the world -- is extremely secretive about its defence programmes, which  benefit from a huge and expanding budget boosted by the nation's rapid  economic growth.  Beijing announced earlier this year that military spending would rise to  601.1 billion yuan ($91.7 billion) in 2011 and also said it was  developing its first stealth fighter jet.  Chinese military spending, however, is still far below the US defence  budget, the world's largest, which was nearly $700 billion in 2010.  China's weapons buildup comes as it places a growing emphasis on  securing strategic shipping lanes and mineral-rich areas in the South  China Sea.  Beijing claims sovereign rights to almost all of the South China Sea,  although several Southeast Asian countries have competing claims.  The criticism by China's state-run media continued on Friday, with an  editorial in the English-language edition of the Global Times daily  calling the Pentagon a "bastion of mistrust of China".  The Pentagon's annual report on China's military "is increasingly  perceived as pathetic by Chinese people", it said.  "The Pentagon actually needs to answer why US arms sales to Taiwan  continue and remain the biggest factor of uncertainty stopping  mainland-Taiwan relationship from advancing without a hitch."

 
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