China’s Communist Government denied Gmail hacking allegations and lashed out at Google, claiming the Web search giant was trying to spark new disputes over internet security between China and the United States.

The People's Daily, the newspaper published by the Communist Party of China, called Google ‘vicious’ and blamed it of slandering the country last week.

The newspaper stated, “Google should not become overly embroiled in international political struggle, playing the role of a tool for political contention. When international winds shift direction, it may become sacrificed to politics and will be spurned by the marketplace.’

China’s comments emerged after the US-based Web search firm claimed that the hack into system that allowed hackers to access to hundreds of email accounts of both US government officials and Chinese human rights activists was traced back to China.

Some analysts are of the view that the editorial could threaten Google's Chinese business. Analyst Ezra Gottheil, from Technology Business Research, says China is already a lost market for Google. If China starts seeing Android as a security threat, Google will lose China market for smartphones and tablets.

Tensions between China and Google are not new. Earlier, Google declined to comply with the China’s mandate to censor search results in the country, and pulled its search operations out China and moved them to Hong Kong.