London, Oct. 8 -- The trial of two men accused of spying for China was scheduled to begin this week in London. But prosecutors unexpectedly dropped the case last month, The New York Times reported.

The decision came amid a separate legal dispute involving a Bulgarian group accused of spying for Russia. The issue centred on the interpretation of the word "enemy" under the Official Secrets Act. The Bulgarians' defense lawyers argued that it should apply only to a country that was at war with Britain or likely to be so in the foreseeable future.

The Court of Appeal later ruled that an enemy nation could be one that represented "a current threat to the national security of the UK", such as Russia, adding, "Friendly powers would fall outside...