China tested a hypersonic missile in August that orbited Earth and then accelerated towards its target.
This test proved China's advanced capability in space and caught the attention of US intelligence officials.
China, Russia, and the United States have all been trying to develop hypersonic weapons.
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According to the Financial Times, China tested a nuclear-capable hypersonic rocket in August.
Sources told the paper that the Chinese military launched a hypersonic glider vehicle and it circled the globe in low orbit space, before speeding towards its target.
Sources told the Financial Times that although the missile missed its target by approximately two-dozen mile, it demonstrated China's advanced capabilities in space and caught the US intelligence off guard.
According to two sources, the test revealed that China had made "astonishing progress" in hypersonic weapons development and was far ahead of US officials, as two sources stated in the paper.
Another source said that they had no idea how the group did it.
Many countries including China, Russia and the US are trying to develop hypersonic weaponry. The missiles can fly at lower altitudes at five times the speed sound at.
Glide vehicles, a type hypersonic weapon that is launched from space aboard a rocket and orbit the earth using their momentum, are called glide vehicles.
They are more maneuverable than ballistic missiles and follow a different trajectory. This makes them easier to track and defend against.
According to the Financial Times, General Glen VanHerck of North American Aerospace Defense Command stated that China's advanced hypersonic capabilities would "prove significant challenges to my Norad ability to provide threat assessment and threat warning" in August.
North American Aerospace Defense Command (NORAD), a binational US-Canada organization, provides protection and aerospace warning for Northern America.
Sources told the paper that the Chinese weapon could fly over the South Pole. This is another concern for the US military, which has its missile systems focusing on the northern polar route.
China has been aggressively developing this technology. They see it as vital to defending against US advances hypersonic technology, Al Jazeera reported.
The news of the test comes amid rising tensions between China, the US, and China's military activities near Taiwan.
According to Defense News, Michael Griffin, Pentagon Under Secretary for Defense for Research and Engineering, stated that the development of hypersonic capabilities was "the most technical priority."
The Pentagon stated this week that hypersonic weapons development is currently too costly and that defense contractors should "drive towards more affordable hypersonics."
According to Reuters, the Pentagon requested $3.8 billion for hypersonic research during the 2022 fiscal year. This is an increase of $3.2 billion from the previous year.