It's difficult to cut through the hype and hysteria.
What exactly did they test?
Let's pick it apart.
China launched a FOBS - not a major technical achievement - they've been around since the 1960s.
The bombardment part of the system appears to have been some kind of hypersonic glide vehicle - i.e. able to extend significantly downrange and manoeuvre cross-range once in the atmosphere, rather than the limited manoeuverability of current MIRVs.
But manoeuvre to what extent?
My sense is they may have launched something, it re-entered, might have made a turn or two (I saw a reference to dog-legs recently) then it missed it's target by - 20 miles.
Hell, it might have made one turn and disintegrated under airload.
For anything other than a special weapon payload - it's going to be pretty ****e - not much point in kinetic effects if it's so off course.
Hypersonics is hard.
The US is only just getting to the point where it can make these platforms work.
I simply don't believe the Chinese have made some short of exponential improvement in capability.
Extraordinary claims require extraordinary proof.
Show me the range data and a clear indication of something extensively modifying it's flightpath and then hitting with a really good CEP and I'll be worried...