China's commercial space boom: Launch sites, rockets, constellations

On November 30, China's first commercial launch site, the Hainan Commercial Space Launch Site, debuted with the maiden flight of Long March-12. This launch is considered a significant step forward for the development of China's commercial space sector.

Just three days earlier, a modified version of China's Zhuque-2 (ZQ-2), a methane-powered carrier rocket, completed its maiden flight from the Dongfeng Commercial Space Innovation Pilot Zone in northwest China's Gobi Desert.

These two launches filled a key gap in the commercial space ecosystem: dedicated commercial launch sites. Without this essential infrastructure, many commercial rockets and satellites found themselves in a bind – capable of launching but without a suitable place to do so.

China's commercial space sector in a nutshell

Launch sites and services, along with the manufacturing of ground equipment, make up the midstream of the commercial space industry. The upstream focuses on rocket and satellite manufacturing, as well as supporting technologies, while the downstream centers on terminal applications and service markets. Traditional applications include communications, navigation and remote sensing, while emerging areas such as satellite internet, space tourism, space mining and deep space exploration are rapidly developing.

In China, the commercialization of space activities began in 2014 when the State Council issued the "Guiding Opinions on Innovating Investment and Financing Mechanisms in Key Areas and Encouraging Social Investment." This policy encouraged private capital to participate in the construction of civil space infrastructure.

The following year, the country released a mid- to long-term development plan (2015-2025) on civil space infrastructure, which spurred the rise of commercial rocket companies, including Landspace, the developer of the Zhuque carrier rocket series.

In 2019, the successful launch of the Hyperbola-1, developed by Interstellar Glory, demonstrated the capability of China's commercial space companies. Since then, a growing number of companies have developed various types of rockets, offering a range of diversified launch services, including small satellite launches, rideshare missions (carrying multiple satellites) and customized launches. In 2023, China's private rocket sector completed 13 launches, a 160 percent increase compared to 2022.

As satellites, rockets and launch sites move toward commercialization, China's commercial space sector is beginning to take shape. Demand for satellite services across various industries continues to grow, and new application scenarios are rapidly expanding.

A major focus is the construction of low Earth orbit satellite constellations, with satellite internet as a primary driver. According to public information, China has planned satellite constellations totaling at least 40,000 satellites, with major constellations like GW and G60 each comprising over 10,000 satellites.

This year, the first two batches of the mega satellite internet project "Thousand Sails Constellation," also known as G60, successfully launched 36 satellites into orbit. However, they still fell short of the planned 108 satellites to be in orbit by the end of the year.

Commercial space as the driving engine for growth

The gap in satellite launches presents opportunities for many companies. "To form these constellations, a heavy-lift reusable rocket is a prerequisite," said Huang He, vice president of marketing and delivery at LandSpace, during an interview with CGTN at the recently concluded Airshow China 2024.

At the airshow, several well-known commercial space companies showcased models of their reusable rockets and set goals for their maiden flights next year. DeepBlue Aerospace is targeting March, Galactic Energy aims for the first half of the year, and LandSpace plans to launch by June.

"China's commercial space industry started later compared to other countries," said Liu Baiqi, founder and CEO of Galactic Energy. "However, its development has been remarkably rapid."

These launches and the accompanying progress have excited the entire industry. A materials supplier that manufactures structural parts and fairings was also present at the airshow. "Our market share has grown significantly because we supply to multiple commercial space companies," said Wang Zhengyi, the marketing director of Light Year Explorer, in an interview with CGTN.

Expanding the scope of commercial space

Also upstream are satellite manufacturers. Geespace, a space company under China's automotive group Geely Auto, has established a mega factory capable of producing 500 satellites each year – the most capable in China by far. The company has already launched 30 satellites into orbit, with a total constellation planned to consist of nearly 6,000 satellites. The constellation will roll out global satellite communication, mobile phone connectivity and low-orbit broadband satellite data services in three phases.

China is also expanding the application of its commercial space sector. For example, the country unveiled two designs for commercial cargo spacecraft intended for cargo resupply missions to China's space station ahead of the Shenzhou-19 mission.

In the realm of suborbital tourism, DeepBlue Aerospace made headlines in October by selling two tickets for suborbital spaceflights aboard their own rocket and capsule, with launches planned for 2027.

"At this point, I can confidently say that most of the key technologies have been overcome," Liu added. "The next step is to implement the engineering process, continuously iterate and validate in practical applications, and optimize our rockets for commercial deployment."

As a manifestation of new productive forces, disruptive technologies and innovations in the commercial space sector continue to emerge. When combined with artificial intelligence, digital technologies and other advancements, China's commercial space sector is poised to further expand its use cases.