China says US report on its military 'groundless'

China on Friday dismissed a US report on its military expansion as "completely groundless" and said it had exaggerated the threat to Taiwan, the island Beijing calls a breakaway province.

China on Friday dismissed a US report on its military expansion as "completely groundless" and said it had exaggerated the threat to Taiwan, the island Beijing calls a breakaway province.

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The US defence 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.