"We took note of the references to China in the NATO Summit’s Communiqué. By claiming that China presents so-called “systemic challenges”, NATO is slandering China’s peaceful development and misjudging the international situation and its own role. It represents a continuation of the Cold War mentality and bloc politics," China's mission to the European Union said in a statement.

"China is committed to a defense policy that is defensive in nature. Our pursuit of defense and military modernization is justified, reasonable, open and transparent. China’s defense budget in 2021 is 1.35 trillion RMB (about US$ 209 billion)," read the statement.

"China is committed to peaceful development. But we will never forget the historical tragedy of the bombing of China’s embassy in Yugoslavia, and we will never forget the human tragedy of the destruction of our compatriots’ families. We will never give up our right to uphold peace, and will stand firm in defending our sovereignty, security and development interests,' read the statement.

"China urges NATO to view China’s development in a rational manner, stop hyping up in any form the so-called 'China threat', and stop taking China’s legitimate interests and rights as an excuse to manipulate bloc politics, create confrontation and fuel geopolitical competition. Instead, NATO should devote more of its energy to promoting dialogue and cooperation and making more efforts that are truly conducive to upholding international and regional security and stability," read the statement.

NATO leaders, who attended a summit in Brussels, have warned about the military threat posed by China and said its behaviour is a 'systematic challenge'.

" China's stated ambitions and assertive behaviour present systemic challenges to the rules-based international order and to areas relevant to Alliance security.  We are concerned by those coercive policies which stand in contrast to the fundamental values enshrined in the Washington Treaty," NATO said in a statement.

" China is rapidly expanding its nuclear arsenal with more warheads and a larger number of sophisticated delivery systems to establish a nuclear triad.  It is opaque in implementing its military modernisation and its publicly declared military-civil fusion strategy.  It is also cooperating militarily with Russia, including through participation in Russian exercises in the Euro-Atlantic area." the statement said.

NATO said it remains concerned with China’s frequent lack of transparency and use of disinformation.

 " We call on China to uphold its international commitments and to act responsibly in the international system, including in the space, cyber, and maritime domains, in keeping with its role as a major power," read the statement.

China is considered as one of the world's most leading military and economic powers.

Nato has become increasingly concerned about the growing military capabilities of China, which it sees as a threat to the security and democratic values of its members, reports BBC.