According to US reports Beijing fired the missile from an artificial reef close to the Spratly Islands. China’s claims to the South China Sea overlap with those of Malaysia, Brunei, Vietnam, Taiwan and the Philippines. The US, which refuses to recognise Chinese sovereignty, has been sending warships on regular patrols through the region.
According to a senior American official China tested a number of anti-ship ballistic missiles during the weekend.
Pentagon spokesman Lieutenant Colonel Dave Eastburn commented: “Of course the Pentagon was aware of the Chinese missile launch from the man-made structures in the South China Sea near the Spratly Islands.
“I’m not going to speak on behalf of all the sovereign nations in the region, but I’m sure they agree that the PRC’s behaviour is contrary to its claim to want to bring peace to the region.
“Obviously actions like this are coercive acts meant to intimidate other (South China Sea) claimants.”
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Chinese authorities have refused to comment on whether any ballistic missile tests took place.
However they did warn before the weekend that they would be carrying out military drills between the Paracel and Spratly Islands and urged other ships to stay out of the area.
Around $5trillion (£3.9trillion) worth of trade passes through the South China Sea each years.
China also accused Donald Trump of “gross interference” in its internal affairs after he commented on the ongoing Hong Kong protests.
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The US President said the demonstrators were “looking for democracy” before adding “some governments don’t want democracy”.
Trump has also imposed a range of trade sanctions on Chinese goods, after accusing the country of unfair practice.
However he agreed not to impose additional sanctions during a G20 meeting with Chinese leader Xi Jinping in Japan.
China has been constructing military facilities on islands and artificial reefs in the South China Sea.