China on Wednesday accused a US congressional advisory panel of "indulging in a Cold War mentality" as the panel urged an in-depth assessment into cyberattacks from China and investments by State-owned companies in the United States.

Analysts warned that friction is rising between the world's two biggest economies as their competition becomes more intense along with growing interdependence on each other.

In its annual report, the US-China Economic and Security Review Commission on Wednesday advised the US Congress on the national security implications of the relationship between the two countries, including China's cyber-capabilities, military and investments, The Associated Press reported.