China says it plans to increase military spending by nearly 18% this year, to 417.8bn yuan ($59bn; £30bn).

The figure was revealed ahead of China's annual parliamentary session, which begins on Wednesday.

Just before the announcement, the US released a report criticising China's military spending, and voicing concern over advances in space and cyberspace.

China rejected the Pentagon report as a "serious distortion of facts" that could harm its relations with the US.

"It breaks international norms... We do not pose a threat to any country. The US should drop its Cold War mentality," the foreign ministry said in a statement.

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In the report, Washington claimed that the real Chinese defence budget for 2007 was at least double the stated amount.

And other nations have also expressed concern about China's growing military power, and say Beijing is not open enough about what it is spending its money on.

'Solely defence'

Most of this year's military increase will be spent on increasing salaries and accommodating higher oil prices, according to Jiang Enzhu, a spokesman for China's National People's Congress, which begins its annual meeting on Wednesday.

Mr Jiang said spending on armaments would rise only moderately.

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