Beijing lambasted the U.S. Defense Department on Sunday over its annual report on the state of China's military, calling it a "hyped-up" move that "deliberately distorted the nation's defense policies."

Released Friday, the report said that China has used "coercive tactics" to boost its presence and control over disputed areas of the South China Sea and is shifting gears to beef up its military assets in the contested waters.

Defense Ministry spokesman Yang Yujun expressed Beijing's "strong dissatisfaction" and "firm opposition" to the report, which he said "misrepresented China's military development," according to the official Xinhua News Agency.