Hackers based in the US ranked first among those targeting China, Beijing has said in its continued retaliation against allegations that the People’s Liberation Army is behind large-scale cyber attacks. “From January to March (2012), the websites of China’s Ministry of National Defence and China Military Online suffered 240,000 cyber attacks, according to the Ministry of National Defence. The Chinese army has never supported any hackings,” the ministry said in a statement, quoted by state-run Xinhua news agency.

China’s military spokesperson, Geng, said Mandiant’s — the US-based internet security group that made the allegation about PLA’s involvement in hacking — report was groundless.

The reason: because the report came to the conclusion that China was the source of attack as the attacks were linked to IP addresses based in China.

“It is a common method to conduct hacking attacks by peculating IP addresses,” Geng said.

Meanwhile, the Obama administration is eyeing fines and other trade actions it may take against Beijing or any other country guilty of cyberespionage.