Developer Larry Silverstein is tangling with a Chinese real estate firm over space in 7 World Trade Center.

Mr. Silverstein cancelled the lease yesterday of Beijing Vantone, which was to take the top five floors of the recently opened office tower. That prompted an executive from the firm to accuse the developer of stirring up “negative publicity,” which he said could prevent it from getting financing as it continues to try to locate in “the heart of Lower Manhattan.”

A statement from Silverstein Properties said that Beijing Vantone, which was seeking to create the China Center, an office center for small Chinese companies, failed to meet several important deadlines. The developer said that the China Center failed to submit a letter of credit by Monday. The initial agreement with Beijing Vantone was the product of several government junkets to China to land the firm, including a visit by Governor Pataki.

The executive director of the China Center, Xue Ya, said in statement: “Silverstein Properties unilaterally imposed deadlines to which we never agreed.”

“Our bank in China had only one week to review the lease and we anticipate they will issue the letter of credit promptly,” Mr. Ya said.

Seven World Trade Center is the first office building destroyed in the terrorist attacks of September 11, 2001, to be rebuilt. It opened for business in May, and lease commitments for roughly 43% of its 42 commercial floors have been reported.

The canceled lease could be a sign of confidence from the developer. The New York Post reported yesterday that Mr. Silverstein recently raised asking rents 10% for the building.

“As has been reported, the Silverstein organization is in serious discussions with a wide variety of world-class companies interested in space in the building,” Mr. Silverstein’s statement said.