China has told the US to drop its "Cold War thinking" following the arrest of four men on espionage charges, as calls for a boycott of the 2008 Olympics in Beijing intensify.

Commenting on the arrests, Chinese foreign ministry spokesman Liu Jianchao said that "The so-called accusation against China on the issue of espionage is totally groundless.

"We urge the United States to abandon its Cold War thinking and stop groundless accusations and instead contribute to mutual trust and friendship between our two peoples."

"For a period of time, certain countries have made complete fabrications," Mr Liu went on. "We're very tired of this."

The news follows Steven Spielberg, the legendary film director, withdrawing from his unpaid post as the artistic director of the opening and closing ceremonies of the Beijing Olympics in protest over the Chinese government's support for the Sudanese regime.

His boycott has been supported by eight Nobel peace laureates, including Archbishop Desmond Tutu and Professor Elie Wiesel, in an open letter to The Independent newspaper.

The Chinese state news agency Xinhua has called the row a "plot to demonise China", claiming that it is attempting to politicise and disrupt the upcoming games.

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