US intelligence agencies have assessed that Saudi Arabia is now actively manufacturing its own ballistic missiles with the help of China, CNN has learned, a development that could have significant ripple effects across the Middle East and complicate the Biden administration’s efforts to restrain the nuclear ambitions of Iran, the Saudis’ top regional rival.

Saudi Arabia is known to have purchased ballistic missiles from China in the past but has never been able to build its own — until now, according to three sources familiar with the latest intelligence. Satellite images obtained by CNN also suggest the Kingdom is currently manufacturing the weapons in at least one location.

US officials at numerous agencies, including the National Security Council at the White House, have been briefed in recent months on classified intelligence revealing multiple large-scale transfers of sensitive ballistic missile technology between China and Saudi Arabia, according to two sources familiar with the latest assessments.