The space vehicle was launched from Jiuquan Satellite Launch Center in Inner Mongolia.
It reached speeds of roughly 1,715 meters per second.
The vehicle is also understood to have landed safely despite previous reports of booster rockets used to launch satellites and global positioning devices falling into people’s backyards.
The test has come following warnings by US officials that China has surpassed the US in hypersonic technology,
Admiral Harry Harris, head of US Pacific Command, told US lawmakers last month: “China’s hypersonic weapons development outpaces ours.”
General Paul Selva, Vice Chairman of the US Joint Chiefs of Staff also stated in late January that the US “lost its technical advantage” in hypersonic military technology.
News of the hypersonic spacecraft test has come amid news China boosted its 2018 defence spending to a massive £127billion.
The spending boost appears to be a step towards its goal of overtaking the US as the world’s biggest military superpower.
According to a bombshell report issued at the opening of China’s annual meeting of Parliament, the country’s 2018 defence budget will be 1.11trillion yuan (£127billion).
Military chiefs in China reportedly want to make the country’s armed forces the most powerful in the world and have set a target of 8.1 per cent growth.
At present, China is the second biggest military spender behind the US.
Sam Roggeveen, a visiting fellow at the Strategic and Defence Studies Centre of the Australian National University in Canberra, said: “The pace and scale of this build-up is really dramatic.
“It is extremely alarming for Australia and many other countries in the region.”
News of the country’s military expansion has also come after an American intelligence report last month warned China and Russia are developing hugely destructive weapons to prepare their military for a potential future war.
Both countries will have operational weapons capable of being fired from earth to take out satellites “in the next few years”, according to the report.
In July China also attempted to send a strong message to the world when it staged a demonstration of its military might in the biggest military parade ever to mark the 90th anniversary of its armed forces.