China covered up sinking of newest submarine: US official

China sought to cover up the sinking of its newest nuclear-powered submarine, a senior US defense official said on Thursday.

The sinking at a shipyard earlier this year was first reported by The Wall Street Journal, which also said that satellite imagery later showed large floating cranes arriving to salvage it.

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The incident is a setback for China, which is seeking to modernize its navy -- the largest in the world, but which includes many smaller warships such as frigates and corvettes.