China has destroyed a satellite with a ground-launched missile, which is not such an easy thing to do. And the United States thought it was the only country that could dominate space.

An excerpt from the BBC story:

Set alongside the recent dramatic increase in China's defence spending and the modernisation of its nuclear weapons and navy, to US officials the space test is one more worrying sign of Beijing's military ambitions.

The Pentagon recently warned in a report to Congress that China's military "is in the process of long-term transformation from a mass army designed for protracted wars of attrition on its territory to a more modern force capable of fighting short-duration, high-intensity conflicts against high-tech adversaries".

The report also noted that "China's military expansion is already such as to alter regional military balances. Long-term trends in China's strategic nuclear forces modernisation, land and sea-based access denial capabilities, and emerging precision-strike weapons have the potential to pose credible threats to modern militaries operating in the region".

And although tiny in comparison with US military budgets, Washington estimates China is spending $80bn (£40bn, 60bn euros) on defence, more than three times the official figure given by Beijing.

But why is the US so worried about anti-satellite weapons in particular?

Put simply the US military relies heavily on satellites to see and hear potential enemies and for its own communications.

So if China does indeed now have the ability to knock out targets in space, those capabilities are now under threat.

US research

But on the issue of space weapons, the US certainly risks the charge of hypocrisy.

The US has also been carrying out research on lasers that could knock out enemy satellites and the Bush administration has repeatedly ruled out the idea of a global treaty banning putting weapons in space.

Only last August, President Bush laid out a new US national space policy which said Washington would "preserve its rights, capabilities and freedom of action in space" and "dissuade or deter others from either impeding those rights or developing capabilities intended to do so".

It also threatened to "deny, if necessary, adversaries the use of space capabilities hostile to US national interests".

Here's a sample from an NYT analysis:

With lengthy white papers, energetic diplomacy and generous aid policies, Chinese officials have taken pains in recent years to present their country as a new kind of global power that, unlike the United States, has only good will toward other nations.

But some analysts say the test shows that the reality is more complex. China has surging national wealth, legitimate security concerns and an opaque military bureaucracy that may belie the government’s promise of a “peaceful rise.”

“This is the other face of China, the hard power side that they usually keep well hidden,” said Chong-Pin Lin, an expert on China’s military in Taiwan. “They talk more about peace and diplomacy, but the push to develop lethal, high-tech capabilities has not slowed down at all.”

Japan, South Korea and Australia are among the countries in the region that pressed China to explain the test, which if real would make it the third power, after the United States and the Soviet Union, to shoot down an object in space.

China’s Foreign and Defense Ministries declined to comment on reports of the test, which were based on United States intelligence data. Liu Jianchao, the Foreign Ministry spokesman, would say only that China opposed using weapons in space. “China will not participate in any kind of arms race in outer space,” he told Reuters.

China’s silence on the test underscores how much its rapidly modernizing military — perhaps especially the Second Artillery forces, in charge of its ballistic missile program — remains isolated and secretive, answering only to President Hu Jintao, who heads the military as well as the ruling Communist Party.

Having a weapon that can disable or destroy satellites is considered a component of China’s unofficial doctrine of asymmetrical warfare. China’s army strategists have written that the military intends to use relatively inexpensive but highly disruptive technologies to impede the better-equipped and better-trained American forces in the event of an armed conflict — over Taiwan, for example.

The Pentagon makes extensive use of satellites for military communications, intelligence and missile guidance, and some Chinese experts have argued that damaging its space-based satellite infrastructure could hobble American forces.

Yet while China’s research and development of such weapons has been well known, the apparent decision to test-fire an antisatellite weapon came as a surprise to many analysts.

“If this is fully corroborated, it is a very significant event that is likely to recast relations between the United States and China,” said Allan Behm, a former official in Australia’s Defense Ministry. “This was a very sophisticated thing to do, and the willingness to do it means that we’re seeing a different level of threat.”