The Chinese Ministry Of Commerce rejected on Tuesday as "groundless" U.S. accusations that Chinese telecoms equipment makers Huawei and ZTE posed a security risk. The U.S. House of Representatives' Intelligence Committee on Monday released a report urging American companies to stop doing business with Huawei Technologies and ZTE, warning that China could use equipment made by the companies to spy on certain communications and threaten systems through computerized links. Both Huawei and ZTE companies have denied the allegations in the report.

Shen Danyang, a spokesman for the Chinese Ministry of Commerce has issued a statementon the ministry's website, saying that the report by the relevant committee of the U.S. Congress based on subjective suspicions, no solid foundation and on the grounds of national security, has made groundless accusations against China. The report aimed at not allowing Chinese enterprises to operate in the U.S. and participate in fair competition with other companies there, Danyang added. The Chinese side expressed its "serious concern and strong opposition."

Danyang added that the United States have "consistently advocated the free market rules" and that the report "was not conducive to cooperation between China and the United States."

"I hope the United States will abandon the practice of discrimination against Chinese companies, act on the open principles of cooperation to earnestly create a fair and equitable market environment for the businesses of the two countries, and promote the smooth development of Sino-U.S. bilateral economic and trade cooperation," Shen said.