China has said reports that the country is attempting to steal military drone technology from the United States is 'groundless'.
Competition between the two countries over the development of drone technology has been the focus of the media in recent days.
The New York Times said that 'hackers based in Shanghai went after one foreign defense contractor after another' for almost two years, China Daily reports.
A US cyber security company told the newspaper the Shanghai hackers were after 'the technology behind the clear US lead in military drones'.
Unmanned aircraft have been put into widespread use around China for military reconnaissance, geological surveys and disaster relief.
Chinese analysts have said the United States is ramping up pressure on China to gain the upper hand in the development and trade of military drones, the report added.