http://www.cnn.com/2007/TECH/space/01/18/china.missile/ index.html

It was only a test launch against an old weather satellite of their own but now we're not too far from true 'Star Wars'.

Edit: Here's the BBC verison of the story for those with a bias against American news.
http://news.bbc.co.uk/2/hi/asia-pacific/6276543.stm

Edit2: And for those who have a thing against all Western media, here's Al Jazeera English's take on it.
http://english.aljazeera.net/NR/exeres/ 306FEA7E-F657-4622-AA8B-BAB2ADFA4BE9.htm