China developing J-18 Stealth VTOL Fighter.

Thanks to Pietro_nurra for the link

via Janes (read the entire article!).

The aircraft in the photo is China's J-18 VTOL stealth fighter jet.
Japanese and US media have lots of speculation about China’s third fourth-generation stealth fighter jet J-18 in addition to the J-20 and J-31 already widely known,
Japan’s Asahi Shimbun was the first to publish a report on the successful test flight of J-18 at the beginning of 2013. It said that China began to develop its own catapult for the aircraft carrier it planed to build but lacked key technology to make such catapult; therefore, China scrapped its original plan for a carrier for horizontal taking off of aircrafts and began instead to develop VTOL aircrafts.
Soon afterwards, US Defense News weekly published an article that believed that China was developing short-distance vertical taking-off and landing stealth fighter jet, i.e. J-18 Red Eagle VTOL fighter jet, with superb stealth function and installed with laser active phased array radar, internal weapon bays and two vector engines with great thrust.
The Japanese and American reports, though sensational in nature and supplemented by later reports, are but speculation. There had been no evidence on the existence of J-18 whatever until now when Britain’s Jane’s Defense Review published a report on the fighter containing a recent photo copied from a post at a Chinese military forum on the Internet.
Judging by the photo given by Jane’s, J-18 looks almost the same as J-31 except its canard structure. This gives people the impression that it is a VTOL version of J-31. It sounds reasonable as developing a VTOL version saves money than the development of an aircraft from nothing. This is also the case with US F-35 stealth fighter jet. It has three versions including a VTOL version.
However, J-31 is developed by Shenyang Aircraft Corporation who has no experience in developing canard aircrafts. It is suspected that the aircraft is a national project participated by Shenyang and other aircraft manufacturers.

One thing is becoming increasingly clear.  China has its sights set on challenging the US militarily...and on equal footing.

NOTE:  Yes the article is from last year but I've only heard it speculated, never confirmed that China is building a VTOL fighter.  The fact that the Pentagon hasn't referred to this airplane is telling.