U.S. panel labels China largest cyberspace threat, report says

China is increasingly using hackers to infiltrate U.S. military computers and defense contractors, according to a draft of Congressional report obtained by Bloomberg.

China poses the largest threat in cyberspace, with its hackers increasingly targeting U.S military computers and defense contractors, according to a draft of a Congressional report obtained byBloomberg.

The report, produced by the U.S.- China Economic and Security Review Commission, found that China's persistence and its advances in hacking activities over the past year poses an increasing threat to information systems and users.

The risks include attempts to blind or disrupt U.S. intelligence and communications satellites, weapons targeting systems, and navigation computers, Bloomberg reported, citing an anonymous U.S. intelligence official.

While the attacks are considered basic techniques, the volume of the activity has allowed China to become a threat, according to the report, adding that the intrusions are largely designed to collect information instead of attacking systems.

The report, scheduled for release on Nov. 14, called for Congress to develop ways to punish and penalize companies found to have engaged in industrial espionage.

Word of the commission's report comes a month after the U.S. House Intelligence Committee released its own report advising companies to veer away from using Chinese telecommunications manufacturers Huawei and ZTE. The committee expressed continuing concerns about the Chinese government's role in the two companies, but didn't offer specifics.

Both Huawei and ZTE deny any influence by the Chinese government and rebut claims that they pose a security threat.