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The US says it is "disappointed" over China's failure to hand over fugitive intelligence analyst Edward Snowden, BBC reported. 

After talks with senior Chinese officials, US Deputy Secretary of State William Burns said Beijing's actions undermined "trust" in bilateral ties.

China said Hong Kong - which allowed to leave Mr Snowden to Russia - had acted in accordance with the territory's law.

Meanwhile, Microsoft has been accused of working with US intelligence bodies to help intercept users' data.

Citing the latest secret documents leaked by Mr Snowden, Britain's Guardian newspaper said the software giant had worked with the Federal Bureau of Investigation (FBI) and the National Security Agency (NSA) to facilitate access to information.

The newspaper claimed Microsoft allowed the NSA to circumvent its system of email encryption.

It also said information had been made available through access to cloud storage service SkyDrive and chat service Skype.

In response, the company said in a statement: "Microsoft does not provide any government with blanket or direct access to SkyDrive, Outlook.com, Skype or any Microsoft product."

It added that it had provided customer data only in response to lawful government requests.