Daily Mail reported that China claims it has developed heat-seeking hypersonic missiles capable of homing in on moving vehicles and aircraft carriers ahead of the US.
China denied testing a nuclear-capable hypersonic missile last August. The development is likely to intensify the existing arms race between trio the US, Russia, and China.
Concerns over the missile launch arose in the US, but Chinese officials insisted the launch was to launch a spacecraft.
A team of researchers from China's National University of Defence Technology claimed to have developed a method to use heat signatures to allow hypersonic missiles to locate targets, according to the report.
In a scientific paper published last month, lead researcher Professor Yi Shihe stated that China has made a series of breakthroughs in core technology that have been proven effective.
According to Chinese reports, China has achieved the difficult feat of developing a system that detects heat at hypersonic speeds. It was a challenge because the pace of missiles themselves creates heat which interferes with the detection systems.
A hyperkinetic missile can travel at speeds of up to 21,000 mph and can strike anywhere on the planet within minutes from space.
Russia, China, and the United States are all working on next-generation missiles, which are being considered as potential triggers for World War Three, the report said.