Taiwanese hackers accessed the PC of a senior State Council official and were caught copying confidential documents, scmp.com reports.
The documents included early drafts of Premier Wen Jiabao\'s government work report, including comments made by Politburo members on the report, the paper said, quoting un-named sources.
The comments on the drafts were regarded as "top state secrets, even more sensitive than the government report itself," a source said. The State Council is China\'s cabinet.
The hacking was carried out from Taiwan, the paper said, quoting a number of sources.
News of the breach follows revelations of GhostNet, a worldwide spy network that has targeted foreign ministries and the Dalai Lama and has been traced to China.
The Chinese government has denied any involvement in the network.
The official whose computer was breached - a deputy department head - will be stripped of his government and party posts.
Senior government and Communist Party officials are supplied with a dedicated PC for accessing official documents, and another computer for non-sensitive material and for accessing the net.
The official was said to have been using the secure PC for going online.