The Pentagon confirmed a report that a Chinese submarine sank earlier this year, and it’s unclear if the vessel was carrying nuclear fuel.

The Chinese submarine sank at pier-side, according to a Pentagon spokesperson, who spoke on condition of anonymity. The person offered no other detail about the incident.

The Wall Street Journal reported earlier Thursday that China’s newest nuclear-powered submarine sank in May or June at a shipyard in the inland city of Wuhan. The Journal cited experts as saying it was likely the sub was carrying nuclear fuel at the time.

Large cranes could be seen in satellite imagery from early June in what the paper said was an attempt to salvage the submarine.

The sinking marks a major setback for China’s military-modernization plans, including its ambitions to outmatch the U.S. as a seagoing power. China continues to ramp up military spending — the defense budget was set to grow by 7.2% in 2024 — with a focus on building out its navy.

The Journal said China scrambled to cover up the sinking, which hadn’t been previously disclosed. On Wednesday, the Pentagon had praised China for its transparency for giving advanced notification of a test launch of an intercontinental ballistic missile.

China’s naval force operates 12 nuclear-powered submarines and 48 diesel-powered submarines, the Pentagon said in an October assessment of China’s military. The country is on pace to have 65 submarines by 2025.

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With assistance from Jon Herskovitz.

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