An American Congressional report is urging tougher screening laws for investment by China's state-owned enterprises, saying China is what it calls the “most threatening actor in cyberspace.”

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The U.S.-China Economic and Security Review Commission acknowledges in a report Wednesday that growing Chinese investment in the United States is an important source of job growth.

But it warns it is too early to know its long-term effects, saying Chinese state-owned companies could use what it says are unfair government subsidies to eventually drive their U.S. competitors out of business.

Chinese Foreign Ministry spokesperson Hong Lei rejected the report on Wednesday, saying it was needlessly provocative.

“The relevant commission has not let go of its cold war mentality. We hope the relevant commission can discard its prejudice, respect facts, and cease interfering in China's internal politics and making statements that are harmful to U.S.-China relations.”

Hong noted that the U.S. and China have been working together on cyber security issues. He says the report does not help that cooperation. China has said that it is also a victim of the many cyber attacks that originate from the region.

The U.S. commission was set up by Congress in 2000 to study the national security implications of U.S. trade with China.