The Associated Press
Friday, May 26, 2006; 12:40 AM

SHANGHAI, China -- China plans to accelerate efforts to modernize the world's largest army, state media reported Friday, a day after Beijing rejected a Pentagon report describing China as a potential military threat.

China has long vowed to upgrade the 2.3 million-strong People's Liberation Army, which lags decades behind the U.S. military in terms of technology and reach.

On Thursday the Commission of Science, Technology and Industry for National Defense issued a 15-year plan approved by President Hu Jintao for developing high-tech industries for both military and civilian purposes, the Communist Party newspaper People's Daily reported.

The plan also aims to further develop manufacturing technology for military industries, apparently to lessen China's dependance on Russia for high-tech weaponry.

Some of the projects are already under way, the People's Daily said. They include the development of large aircraft, pressurized water nuclear reactors and high temperature gas-cooled reactor nuclear power stations, along with manned space missions and lunar probe programs.

Despite double-digit increases in military spending in recent years, Beijing insists its military is focused solely on defense.

The Pentagon report issued Tuesday accused China of seeking to extend its military reach with more long-range aircraft and weapons that would allow it to compete with the United States and potentially pose a threat to other countries.