On Thursday, Britain said it was concerned about a Russian satellite test which involved the launch of a projectile with the "characteristics of a weapon".
"This week we have been reminded of the threat Russia poses to our national security with the provocative test of a weapon-like projectile from a satellite threatening the peaceful use of space," Wallace wrote in The Sunday Telegraph newspaper, adding that China also posed a threat.
"China, too, is developing offensive space weapons and both nations are upgrading their capabilities. Such behavior only underlines the importance of the review the (UK) government is currently conducting", he added.
Tensions between Britain and Russia have been high in recent weeks, as Britain has targeted Russians with new sanctions, accused Russian actors of trying to meddle in last year's election and said Moscow has tried to hack into vaccine research.
Separately, Britain announced on Monday it would suspend its extradition treaty with Hong Kong in an escalation of a dispute with China over its introduction of a national security law for the former British colony.
Earlier this month, Prime Minister Boris Johnson ordered equipment from China's Huawei Technologies to be purged completely from Britain's 5G network by the end of 2027.China - once courted as the prime source of investment in British infrastructure projects from nuclear to rail - has accused Britain of pandering to the United States.