A top-secret U.S. government assessment reportedly concludes that China would defeat the United States in a war over Taiwan due to Beijing’s ability to mass-produce cheaper weapons in overwhelming quantities.

The “Overmatch Brief” warns that U.S. reliance on costly, highly sophisticated systems leaves it vulnerable, a realization that reportedly alarmed national security officials.

In simulated wargames, major U.S. assets such as the USS Gerald R. Ford are frequently destroyed by China’s submarines and large arsenal of hypersonic missiles.

Despite this, the Pentagon still plans to build more Ford-class carriers even though the U.S. has not yet deployed a hypersonic missile, The Telegraph has reported.

Analysts involved in Taiwan conflict simulations note that the U.S. suffers severe losses, including large numbers of ships, submarines, and advanced aircraft.