BEIJING (CBSNews.com) -- China summoned the U.S. ambassador and the Defense Ministry warned Tuesday of "serious damage" to military relations after the United States charged five Chinese army officers with hacking into U.S. companies to steal vital trade secrets.
China's response marked a rapid escalation in a dispute that has deeply angered Beijing over U.S. claims that the Chinese military is illegally helping the country's massive state industries.
China has already strongly denounced the charges and said it was suspending cooperation with the U.S. in a joint cybersecurity working group. The group was formed last year in the wake of
in online commercial espionage. China has stridently denied the allegations.
State-run Xinhua News Agency said Tuesday that Chinese Assistant Foreign Minister Zheng Zeguang called U.S. Ambassador Max Baucus to a meeting Monday night.
Zheng lodged a "solemn representation with the U.S. side," Xinhua said, using standard diplomatic language for a complaint. A U.S. Embassy spokesman said he had no immediate comment.
A statement issued by the Foreign Ministry Monday night said the charges were based on "fabricated facts" and would jeopardize China-U.S. "cooperation and mutual trust."
"China is steadfast in upholding cybersecurity," said the statement, which was read again Tuesday on state television's midday news broadcast. "The Chinese government, the Chinese military and their relevant personnel have never engaged or participated in cyber-theft of trade secrets. The U.S. accusation against Chinese personnel is purely ungrounded and absurd."
In its statement, the Defense Ministry repeated the charges, but added that the U.S. accusations would send a chill through gradually warming relations between their two militaries.
"Up to now, relations between the China-U.S. militaries had been development well overall," the ministry said. "The U.S., by this action, betrays its commitment to building healthy, stable, reliable military-to-military relations and causes serious damage to mutual trust between the sides."
The Chinese and U.S. have launched a series of initiatives to reduce mutual suspicion and smooth communication. However, U.S. criticism of China's territorial assertions in the South China Sea and support for Japan and other Chinese rivals have consistently generated friction.
The hacking charges represent the biggest challenge to bilateral relations since an unprecedented private summit between President Obama and his counterpart Xi Jinping last summer.
The Chinese targeted big-name American makers of nuclear and solar technology, stealing confidential business information, sensitive trade secrets and internal communications for competitive advantage, according to a grand jury indictment that the Justice Department said should be a national "wake-up call" about cyber intrusions.
Intelligence officials have estimated that American companies lose about $250 billion every year in intellectual property -- much of it to the Chinese, reported CBS News correspondent Bob Orr.