"Personally I think these accusations are without foundation," Ma Xiuhong, vice trade minister to the Ministry of Commerce told reporters on the sidelines of a press conference.

"These are just opinions derived from the biased understanding of certain people."

In its annual report to Congress Tuesday, the US-China Economic Security Review Commission called on the US government to take legal action, including through the World Trade Organization, to combat China's foreign exchange and other "unfair" trade practices.

Commission Chairman Roger Robinson, in releasing the report, said the US-China economic relationship was "heavily imbalanced and undermines our long-term economic health."

He cited, among other factors, the 124 billion trade deficit in 2003, how China "artificially suppressed" value of the yuan by as much as 40 percent and its poor enforcement of intellectual property rights.

Ma said she did not know what "the rationale is (for taking action against China at the WTO) or what kind of action they will take at the WTO.

"Sino-US trade has become the major contributor to US export growth," she said.

"Saying that Sino-US trade relations will harm the US economy, I don't know what kind of facts they have to support their ideas or whether this is merely a groundless accusation that someone has just dreamed up.

"All the facts demonstrate that the development of trade relations between the two countries is a win-win situation."

The report concluded that US policies towards Beijing on the economy and security were inefficient and lopsided and called for them to be thoroughly revamped.