Chinese naval modernization and capability expansion

China is advancing its naval modernization through the deployment of new weaponry and the acceleration of ship production.

In late July 2026, the People’s Liberation Army Navy demonstrated the YJ-20 hypersonic anti-ship missile being launched from Type 052D destroyers. This marks the first time the missile, capable of speeds between Mach 5 and Mach 10, has been deployed on a class other than the Type 055 cruisers. This integration is intended to expand China’s anti-access/area-denial capabilities in the western Pacific and South China Sea.

By mid-August 2026, reports and satellite imagery indicated that China has transitioned the Type 054B frigate program from the prototype phase into serial production. Construction is occurring simultaneously at the Huangpu Wenchong shipyard in Guangzhou and the Hudong-Zhonghua shipyard in Shanghai.

Technical analysis of these newer 5,000-ton vessels suggests a significant increase in firepower. While the first two ships in the class feature four eight-cell vertical launch system (VLS) modules, imagery of an unfinished vessel shows a configuration of six modules. This modification could increase the total number of missile launch cells from 32 to approximately 48, representing a 50 percent increase in capacity. This expanded VLS may support weapons such as the HHQ-16 surface-to-air missile and the Yu-8 anti-submarine rocket, providing greater flexibility in balancing air defense against anti-submarine systems. Additionally, modifications to integrated masts suggest the inclusion of updated sensors or electronic warfare systems, a move analysts suggest is intended to narrow the capability gap with United States surface combatants.