The review, released on Thursday, also said China is likely to continue its space development program "as a vital means of achieving military competitiveness against the United States."

"The organizations engaged in China's space development have strong ties to the People's Liberation Army and a considerable number of its satellites are presumably intended for military purposes," the National Institute for Defense Studies said in an annual strategic review of East Asia.

China launched a space probe in October as part of an ambitious exploration program that has included successes with man-made satellites and manned space flights. The think-tank said the program had the "effect of raising national prestige."

It added that China's test in January last year to shoot down an object in space -- its own weather satellite -- had fueled military concerns.

"Missiles can destroy not only U.S. artificial satellites but also Japanese intelligence-gathering satellites," the review said.

"The possibility has emerged that the cluster of satellites will come under a great threat when international tension heightens."