China’s reported launch of a hypersonic missile into orbit has raised concerns that U.S. rivals are quickly neutralizing the Pentagon’s missile defenses even as it invests tens of billions of dollars in upgrades.

In a test two months ago, the Chinese military sent a nuclear-capable missile into low-orbit space and around the globe before cruising down to its target, the Financial Times reported Saturday, citing people familiar with the matter. Although the weapon missed its mark by about two dozen miles, the paper said, the technology, once perfected, could be used to send nuclear warheads over the South Pole and around American anti-missile systems in the northern hemisphere.

China disputed the paper’s account, with Foreign Ministry spokesman Zhao Lijian describing it as a "routine test of a space vehicle to verify technology for spacecraft reusability” and comparing it with systems being developed by private companies. "China will work with other countries in the world for the peaceful use of space for the benefit of mankind,” Zhao told a regular news briefing Monday.