The development has significant repercussions on several fronts, including economics, trade, diplomacy and the military.

As per a report presented by the Pentagon to the U.S. Congress, China’s 2016 launch of its first experimental quantum communications satellite was a “notable advance in cryptography research”.

“The developer of the satellite claimed it has ‘enormous prospects’ in defense, moving China closer to more secure communications,” reads the report said.

As per the Pentagon’s estimate, China’s military spending in 2016 was upwards of $180 billion.