Washington: A congressional advisory panel said today that Chinese spying in America represents the greatest threat to US technology and recommended lawmakers consider financing counterintelligence efforts meant to stop China from stealing US manufacturing expertise.

The US-China Economic and Security Review Commission also said in its annual report to Congress that small and medium US manufacturers, which represent more than half the manufacturing jobs in America, "face the full brunt of China's unfair trade practices, including currency manipulation and illegal subsidies for Chinese exports."

China's economic policies create a trade relationship that is "severely out of balance" in China's favour, said the commission, which Congress set up in 2000 to investigate and report on US-China issues. Carolyn Bartholomew, the commission's chairwoman, told reporters that China's interest in moving toward a free market economy is not just stalling but is actually now reversing course.

Chinese officials have reacted to past reports by warning against what they see as outside interference in Chinese affairs. The report comes about a year before US presidential and congressional elections, and candidates have been critical of what they see as China's failure to live up to its responsibilities as an emerging superpower.

China often is singled out for its flood of goods into the United States; for building a massive, secretive military; for abusing its citizens rights; and for befriending rogue nations to secure sources of energy.

Source : PTI