At least six Chinese reusable rockets are expected to launch this year, marking a major step forward for private spaceflight. The country’s first commercial launch pad is set to begin operations in November 2024, while Beijing and local governments are pouring billions of dollars into private companies.

The rise of these companies reflects China’s long-term strategy to develop an independent space industry that is not dependent on Western technology. For years, Beijing has touted the sector as a symbol of its success, growing largely with domestic resources.

The trend of technological self-reliance – from semiconductors to artificial intelligence (AI) – is becoming increasingly urgent as China seeks to consolidate its position and build a “fortress” in the face of growing competitive pressure from the United States.

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Aerospace is one of the areas where China wants to catch up with the US. Photo: WSJ

In a rare meeting with tech CEOs in February, Chinese President Xi Jinping said he wanted the private sector to compete, spur growth and innovation. The boss of satellite maker GalaxySpace was also present.

China opened its space industry to the private sector in 2014 and first mentioned the industry in its annual government report last year.

Beijing is concerned that relying solely on state-owned enterprises will not be able to keep up with the US, said Lincoln Hines, an assistant professor at Georgia Tech. Elon Musk’s SpaceX is currently leading the aerospace industry, accounting for more than half of all launches in 2024. The Falcon 9’s first stage — a partially reusable two-stage rocket — is reusable, reducing costs and has flown 26 flights.

SpaceX also has more than 7,000 Starlink satellites in operation. In October 2024, the company successfully launched its Starship rocket and recovered its Super Heavy booster on its first attempt. However, the company lost the Starship during a test flight in March due to an explosion.

SpaceX’s success has given potential investors confidence in the future of the space industry, said Lan Tianyi, founder of consultancy Ultimate Blue Nebula. This is important in China, where the investment environment is more conservative than in the United States. It also brings people from other industries into space-related fields.

Once dominant in the military and scientific spheres, aerospace is playing an increasingly large role in commerce. Smartphone manufacturers are starting to offer satellite communications services such as the SOS feature on the iPhone, which can be used in emergencies when there is no cellular network.

Notable names in the Chinese aerospace industry include LandSpace Technology, Orienspace and Deep Blue Aerospace. Deep Blue Aerospace is planning to test the recovery of the Nebula-1 rocket’s booster stage after an orbital flight. The company plans to organize space exploration flights for tourists in 2027, selling tickets for more than $100,000.

Founder Huo Liang believes Chinese companies can catch up with SpaceX by 2030. But Blaine Curcio, founder of Orbital Gateway Consulting, believes it will take longer because SpaceX itself is constantly innovating. On top of that, China’s state-owned enterprises have begun to compete globally. In November 2024, a commercial rocket developed by CAS Space launched a remote-sensing satellite for Oman.

After SpaceX, the company with the most launches last year was CASC, with 51 launches, compared to SpaceX’s 134, although Chinese rockets are not reusable. And not all launches were successful, for example, a rocket from the private company Space Pioneer accidentally launched and exploded on a hillside, causing damage to nearby homes but no casualties.

China has at least two competitors to Starlink, Guowang and Thousand Sails. Thousand Sails has signed deals to provide satellite services in Malaysia, Kazakhstan and Brazil.

Deep Blue Aerospace's Huo calls SpaceX a mentor in the industry. He admits they still have a long way to go to catch up with the leader.

(According to WSJ, FT)