"We urge the US to abandon its Cold War mindset, take off its coloured glasses, and have an objective and rational understanding of China's military development," Foreign Ministry spokeswoman Hua Chunying said, referring to the report released on Saturday by the US Department of Defence.
She called on the US to stop issuing such biased report and refrain from any words and deeds that undermine bilateral relations and trust between the two military so as to maintain the healthy and stable growth of military relationship.
It said China's official defence budget last year was USD 136.3 billion while that of India was USD 38.2 billion.
The report also said that "Pakistan remains China's primary customer for conventional weapons."
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Hua expressed "strong opposition" to the US report, which ignores facts, make speculations and continues to play up the so-called China threat and lack of military transparency and casts doubts on China's normal defense building and strategic plan, state-run Xinhua news agency reported.
She reiterated China's adherence to a peaceful development path and defensive military strategy, which is a firm force in maintaining peace and stability in Asia-Pacific and the world at large.
China's defence building is aimed at safeguarding national independence, sovereignty and territorial integrity, which is entitled to every sovereign state, Hua added.
The report also drew criticism from China's Defence Ministry, with spokesperson Geng Yansheng warning that China will make further response accordingly.