Beijing just revealed its latest superweapon.
In doing so, the world's largest nation also divulged the reason it's been building such massive airstrips on islands throughout the South China Sea.
These latest developments prove China is as determined as ever to maintain its long-held claim that the disputed waterway is its sovereign property - through which a full third of all global trade routes pass, accounting for some $3 trillion of goods each year.
Here's an in-depth look at what the Red Dragon's new weapon can do, plus a profit play for investors looking to hedge their portfolios against a U.S.-China clash...
What We Know About Beijing's New South China Sea Superweapon
This past Sunday, China's state-run newspaper The Global Times announced the completion and imminent deployment of Beijing's new Shaanxi Yun-9 "quadruple turbo prop" military aircraft.
Don't be fooled by that tech-heavy mouthful of a moniker.
The Yun-9 is a straight-up warplane - and a powerful one at that.
In fact, it's capable of transporting up to 20 tons of cargo or vehicles and about 100 troops at once. Plus, it can "serve in a medivac function with a maximum range of 4,200 kilometers (2,610 miles)," The Associated Press reported today (Dec. 6).
"As the backbone transport aircraft of the PLA [People's Liberation Army], the Yun-9's combat readiness means China has the ability to ensure military supplies reach offshore and even open seas," Wang Ya'nan, chief editor of Aerospace Knowledge Magazine, told The Global Times.
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There's much to be extrapolated from Wang's "backbone" reference. It denotes a finality with the Y-9's emergence - that the war craft was the last missing puzzle piece China needed before stepping up its aggressive control campaign.
What's more, The Diplomat noted today that Beijing has at least four of these warplanes ready for battle.
Indeed, these aircraft are primed for deployment now, which means test runs had been carried out under the unwitting nose of the U.S. Navy, despite its routine Freedom of Navigation Operations (FONOPs) in the South China Sea.
The Global Times confirmed that the Yun-9 has indeed flown over the hotly contested waters. The outlet stated the warplane's surreptitious training sessions consisted of "flying from a military airport in the southwestern province of Sichuan, landing on an island in the South China Sea, and returning to base the same day."
This statement confirms yet another disturbing detail.
The islands to which the Yun-9 flew in the South China Sea are prepped for military action.
Those "islands" are, in fact, artificial ones built on disputed features in the Spratly island group. Money Morning first reported on the archipelago's construction and the aircraft hangars it appeared to house in August 2016...
"While no actual fighter jets have been seen at the hangars yet, their rapid construction and reinforced building material suggest that's likely to change soon," we said on Aug. 9, 2016.
Now we know exactly what kind of aircraft those hangars were built to protect...
Chinese superweapons - like the Shaanxi Yun-9.
Fortunately, the U.S. military has a few innovations of its own to counter China's. And the contractor responsible is poised to offer investors market-crushing returns.
Here's a look...
How the United States Will Counter China in the South China Sea
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The Shaanxi Y-9 is actually a copy of a U.S. plane - one "roughly comparable to the United States' Lockheed Martin Corp. (NYSE: LMT) C-130J Super Hercules," reported The Diplomat today.
And there's really no battling the likes of Lockheed projects - especially those birthed by the defense giant's "Skunk Works" developer (a pseudonym for LMT's top-secret Advanced Developments Program).
Money Morning Executive Editor Bill Patalon, who's been covering defense advancements in the Asian arms race for over three decades, recently wrote about LMT's current and future investment prospects.
He pointed out on Dec. 1 that LMT, with its many aircraft projects underway, plays a crucial role in America's larger "defense shield" as well - with the GMD and THAAD systems, in particular.
The THAAD and GMD are missile defense systems based throughout the United States and in various parts of East Asia. Their job is to detect and intercept incoming missiles - which is where LMT comes in.
"Lockheed's super radar system with a two-stage interceptor has the speed and knockout punch that will be needed by interceptors," Bill wrote.
Editor's Note: Don't miss a single update on the South China Sea as Beijing steps up its aggressive campaign to take over the disputed waters. Get real-time alerts sent to your inbox, completely free, here.
"Lockheed also is working on the next-generation lasers that can hit hypersonic missiles [missiles with speeds five to 10 times above Mach 1, approximately 767 mph] shortly after launch and before they reach ultra-high speeds."
These innovations make Lockheed a great way to profit from America defense against Chinese military action in the South China Sea.
And Lockheed doesn't look to be slowing down its internationally lauded innovation anytime soon, either.
In fact, on Nov. 29, the defense leviathan announced its recent success with melding the imminently profitable autonomous driving world into the defense industry.
Specifically, Lockheed reported that its Autonomous Mobility Applique System (AMAS) has logged more than 55,000 miles in tests at two U.S. Army bases.
The new technological addition to LMT's swath of defense projects diversifies the company, adding to its already gigantic future sales projections, which are expected to hit $51 billion in 2018 alone.
But Bill has even more to offer readers right now.
He's spotted yet another major profit opportunity that he's sharing with select readers...
And like Lockheed, this opportunity could be a must-have portfolio hedge if U.S.-China relations really go sour.
Take a look...
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