China spends billions of dollars yearly to globally spread disinformation, a report of the US State Department published on Thursday warned.

Beijing conducts "foreign information manipulation" through the use of propaganda, disinformation and censorship, while promoting positive news about China and its ruling Communist Party, according to the report of the State Department's Global Engagement Center.

The global disinformation campaign threatens to cause a "sharp contraction" in freedom of speech around the world, it said.

It also suppresses critical information that contradicts its narratives on contentious issues such as Taiwan, human rights and its flagging domestic economy.

"If we don't allow this information manipulation to be stopped, there's going to be a slow, steady destruction of democratic values," James Rubin, GEC special envoy and coordinator, told reporters.

"We don't want to see an Orwellian mix of fact and fiction in our world."

The report said China's approach to information manipulation includes promoting "digital authoritarianism," exploiting international organizations and exercising control of   Chinese-language media.

Beijing, it added, had also acquired stakes in foreign media, sponsored online influencers and sought to co-opt foreign political elites and journalists.

WITH AFP