From data centres in the sky to commercial space travel, ambitions once seen as distant are becoming part of the country’s broader economic strategy.
China has listed aerospace development as a strategic priority in its 15th Five-Year Plan, signalling that space is no longer just a scientific pursuit, but a pillar of its future economy.
From rocket launches to astronaut returns, the country’s Shenzhou missions – China’s crewed spaceflights – are widely televised.
Less publicised, however, are the rocket systems that make those missions possible.
At the Shenzhen Science and Technology Museum, parts of retired rockets are on display for the public until Wednesday (Mar 4).
One exhibit shows what remains of the Long March 2F rocket that launched two astronauts into space in 2016. Its scorched surface is a reminder of the intense heat endured during re-entry.
Nearby sits a component of the Long March 3A rocket system, which has been used to launch satellites and spacecraft for China’s lunar exploration programme.
The message of the free exhibit is simple – ambitions in outer space are no longer distant dreams.
As China’s leaders gather in Beijing this week for the annual Two Sessions meetings, where economic priorities for the year are set, the country’s expanding space ambitions are likely to feature.
A NEW ROADMAP FOR SPACE
In January, the China Aerospace Science and Technology Corporation, the country’s main contractor for space programmes, outlined its plans for the country’s 15th Five-Year Plan.
Among its goals are setting up a space tourism system, building data centres in space, studying space mining, and improving the monitoring and removal of space debris.
China has also emphasised international cooperation in space.
For example, its civil space agency, the China National Space Administration, has partnered with multiple countries on satellite projects and invited foreign participation in its planned International Lunar Research Station.
David Dong, deputy CEO of the Orion Astropreneur Space Academy – an institution that nurtures space industry talent – said the new focus areas reflect China’s desire to stay ahead.
He added: “They need new frontiers in this sector to demonstrate that China is still leading or can be a leader in the space industry in terms of technology advancement.”
SPACE RACE AND GLOBAL RIVALRIES
Beyond commercial ambitions, space is also seen as an arena where geopolitical competition plays out.
China has made a series of significant space achievements in recent years.
In 2019, it became the first country to land a spacecraft – the Chang’e-4 – on the far side of the moon. In 2024, it launched another mission to collect lunar samples from the moon’s far side – something the United States has not achieved.
The missions brought China closer to understanding the moon’s geological history and strengthened its position as a serious contender in deep space exploration.
Such achievements are costly and demand deep pockets and a high tolerance for failure, experts say, with Beijing supporting the sector through subsidies and state-backed investment.
One example is LandSpace, a private rocket firm backed by state-linked investors, which is developing reusable launch technology to lower costs and enable more frequent missions.
US-based SpaceX is currently the only company to have operationalised reusable orbital rockets at scale.
At the same time, experts say space infrastructure cannot be built in isolation.
Dong said countries would need to invest heavily if they want to build space capabilities entirely on their own.
“I don’t think it’s feasible for every country, because space is a shared resource, and the infrastructure inherently can be shared (by) everybody,” he noted.
“You don’t want a satellite only for your own country. You want it to be able to serve everybody else.”
He added that countries need multilateral or bilateral talks to work together and reduce infrastructure costs.
However, such cooperation has limits. Many space technologies are dual-use, serving civilian needs like navigation as well as military functions such as intelligence gathering.
Export controls and national security concerns limit certain collaborations. For example, US law restricts direct cooperation between US space agency NASA and China.
Still, analysts say commercial space could offer room for partnership, especially in areas such as climate monitoring and disaster management, where satellite data is often shared across borders.
Hong Kong could help facilitate such cooperation, given its role as an international financial centre and its common law system, which may ease cross-border financing and partnerships.
Gary Ng, senior economist at French investment bank Natixis, said Hong Kong could act as a bridge between Chinese and international capital, and support financial and technology collaboration in sectors such as space.
He added that as more satellites are launched globally, developing a rules-based system to manage space activities will become increasingly important.
PRIVATE FIRMS DRIVING GROWTH
While the government sets the direction, private companies are increasingly powering China’s commercial space ambitions.
One of them is Shenzhen-based Cangyu Space. The company plans to launch its first high-orbit relay satellite by the end of 2026, which it said will help it achieve full coverage across Southeast Asia.
“We can monitor operations at certain mining sites or distant-sea fisheries where there’s no signal coverage,” said Jason Li, the company’s market manager.
Such satellites could also support disaster management and remote sensing applications that require near real-time data transmission, he added.
Cangyu aims to eventually build a satellite network offering global coverage.
The company operates in Shenzhen’s Luohu district, the same area where China’s economic reforms first took shape in the 1980s, when the city was designated one of the country’s first special economic zones.
The district became a testing ground for market-oriented policies and foreign investment.
Four decades later, it is positioning itself as a base for space and aerospace firms, offering policy support and industry infrastructure to attract companies in the sector.
“Luohu has provided us with industrial policies, space guarantees, and preferential policies for talent introduction,” Li said.
“Moreover, it offers excellent services for our overseas expansion and globalisation. It has introduced us to many overseas resources, including forums and enterprises.”
In the same district, Magic Cube Satellite Technology focuses on satellite hardware. The company operates out of the Luohu District Space and Aerospace Technology Building, 10 floors above Cangyu’s office.
Magic Cube has set up what it says is China’s first production line for satellite solar arrays, which power satellites in orbit.
The company has been in many business collaborations with Cangyu, said its marketing director Zhang Cheng.
“Eventually, some of their terminals can be applied to our satellites, achieving a true industrial chain synergy,” he added.
Similar buildings that house space companies and related services are emerging across China, as local governments back the growth of commercial aerospace ecosystems.
According to industry data, the country is now home to more than 600 commercial space companies.
Annual financing in the sector exceeded US$2.5 billion last year, up 32 per cent year on year. The broader commercial space industry is estimated to be worth more than US$350 billion.
State media have also reported that at least five private rocket makers are considering initial public offerings, a sign of growing investor interest.
Orion Astropreneur Space Academy’s Dong said such momentum is important to attract both investors and public attention to the sector.
But he added that as the industry becomes increasingly commercially driven, the challenge will be whether Chinese space companies can generate sustainable revenue from their operations.
SPACE FOR THE PUBLIC
China’s space ambitions are also reaching a wider audience.
In January, Chinese startup InterstellOr announced it had sold tickets for a 2.5-hour spaceflight priced at US$430,000. The flight is expected to take place around 2028.
The company said more than 20 people, including an actor, have signed up.
For some members of the public, space tourism is a sign of how far the country has come.
“They can all go on space trips. Things that we never dared to imagine before can now be realised,” said Wang, who works in the petrochemical industry and gave only his surname, during a visit to the Shenzhen Science and Technology Museum on Jan 29.
Younger generations are also inspired.
“I want to see whether the Earth is flat or not. Since I haven’t been to space, I don’t know if these theories are true. I just want to go up there to verify it,” said a primary school student at the exhibition.
For other visitors, the emotional impact runs deeper.
“I wanted to cry, it’s very touching because China has come such a long way. From my parents’ time, we had nothing,” said Susan Chan, a 57-year-old interior designer.
Source : https://www.channelnewsasia.com/east-asia/china-space-industry-travel-economy-5966691