According to the British Defence Secretary, the West “needs to wake up” to the dangers of a new arms race between China and Russia. According to Mr Wallace, both countries have developed powerful missile technology.
Reports have shown President Xi Jinping carried out a second test of a hypersonic orbital missile which was capable of carrying a nuclear warhead earlier this year, although Chinese officials have denied the reports.
Government scientists are now investigating exactly what the new craft is capable of doing.
Mr Wallace said: “I definitely think the West needs to wake up to the consequences of Chinese and Russian missile development.
“They are potent.
He added: “We have seen them increase speeds in missiles and ranges to an accurate level.”
China’s second test involving a similar “hypersonic glide vehicle” took place on August 13.
According to the Financial Times, government scientists are confused by the spacecraft’s capabilities with one source even claiming that it appears to “defy the laws of physics”.
The Mail Online reports China tested one ‘peaceful’ civilian spacecraft but analysts fear it can be armed with a nuclear warhead and evade missile defences.
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He said: “This was not a missile, this was a spacecraft.
“This is of great significance for reducing the cost of spacecraft use.”