"China's modernised military, and especially its space-related capabilities, could be put to use in ways that increase China's ability to gain diplomatic advantage or resolve disputes in its favour, and possibly against US national security interests," said a US report.
The National Security Report on Revising US Export Controls on Satellites, by the State Department and the Department of Defence, said China was developing and testing several new classes and variants of "offensive" missiles, upgrading older missile systems, and developing space-based methods to counter ballistic missile defences of the US and its allies, including anti-satellite (ASAT) weapons.
"China produces a broad range of sophisticated ballistic, cruise, air-to-air, and surface-to-air missiles. Many of China's final assembly and rocket motor production facilities have received upgrades over the past few years, likely increasing production capacity.
"In addition to supplying China's military, complete systems and missile technologies could be marketed for export. China's space launch vehicle industry is expanding to support satellite launch services and the manned space program," it said.
Foreign and indigenous systems give China the capability to "jam" common satellite communications bands and Global Positioning Satellites (GPS) receivers, specifically, the Chinese navigation constellation, the report said.