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That story has been out for several weeks.

China reportedly test-fires longer-range missile

With twice the reach previously estimated, national defense paper provides measures to protect Taiwan

2002-11-22 / Taiwan News, Staff Writer / click for link

A PRC-made C-802 cruise missile, similar to the C-803 missile but with twice the range of the U.S.-made Standard SM-2 missile, is displayed at a recent air show in Zhuhai City in Guangdong province. (Central News Agency)

China has recently test-fired a new cruise missile dubbed C-803 with twice the range initially estimated by U.S. intelligence agencies, and such missiles may pose a threat to U.S. or allied ships in case of military conflicts with China, the Washington Times said Wednesday.
In Taipei, an official from the Ministry of National Defense said Taiwan has completed its assessment report on China's missile threat, which also provides suggestions on the measures Taiwan should take to cope with a missile attack from China.
Speaking on condition of anonymity, the official referred to China's deployment of its missiles targeted at Taiwan as the biggest military threat to Taiwan. China appears to have decided to give priority to developing new missiles while seeking to expand its military presence in this part of the world, he said.
In the Legislature, Defense Minister Tang Yiau-ming admitted China's deployment of such missiles may increase its pressure and options for a final solution to the Taiwan issue. Tang called on the people to support the government's plan to increase its military spending in order to deter such threats.
According to the Washington Times, China test-fired a C-803 anti-ship cruise missile from a JH-7 fighter-bomber earlier this month over Bohai Bay, off northern China. The results even surprised U.S. intelligence officials. Until recently, the range of Chinese missiles had been assessed to be at about 125 kilometers. The new missile test showed that its range has increased to about 250 kilometers.
The last time the missile was tested was July 4, when the People's Daily, the official Communist Party newspaper, announced the testing of a beyond-visual-range anti-ship missile. The weapon is believed by Pentagon officials to be part of Beijing's efforts to develop a long-range strike capability against U.S. aircraft carriers and ships.
The official said the missile represents a new capability for the Chinese military in conducting "over-the-horizon" attacks on U.S. or allied ships in any conflict with China. The C-803 is believed to be a derivative of the C-801 anti-ship cruise missile but can travel at supersonic speeds, making it very difficult for ships to stop.
Defense specialists said the C-803 missile has the capability to receive target information in flight. Richard Fisher, a specialist on the Chinese military with the Jamestown Foundation, said the new C-803 missile will probably be outfitted on an upgraded JH-7a fighter-bomber.
"With a range of 250 kilometers, it gives China and its export clients a new anti-ship missile that can fire beyond the reach of U.S. naval anti-aircraft missiles like the Standard SM-2, which will soon equip Taiwan's Kidd-class destroyers," Fisher said.