Participation of private commercial players
Posted: Mon Jan 20, 2025 7:01 am
The past decade has seen an explosive growth in the number of commercial space companies in China. By November 2020, there were more than 160 commercial space companies in China.
More than half of them have been founded since 2014, a year after Xi Jinping took over as China’s new leader and the government decided to view civil space development as a key area of innovation. Private space ventures boast a wide range of offerings, from satellite manufacturing to rocket launches.
FutureAerospace, a state-funded industry think tank, says investment in Chinese commercial space firms totaled 3.57 billion yuan ($550 million) in 2018 and will exceed 30.6 billion yuan ($4.7 billion) by 2025.
The surge is fueled by growing demand for satellite launches. In the next decade, China plans to build vast constellations of commercial satellites that could offer services ranging from high-speed internet for airplanes to tracking coal shipments.
Read more CHINA NEWS China, Saudi Arabia pledge to deepen energy cooperation
To stimulate the commercial space industry, China uses belgium telegram database government contracts and subsidies to give these companies a leg up. However, state-owned commercial space companies like Expace and China Rocket may have easier access to government funding and Chinese financing. Private commercial space companies either receive government support or seek venture capital.
A 2019 report from the Institute for Defense Analyses estimated that VC funding for Chinese space companies reached $516 million in 2018, though that amount was far smaller than the $2.2 billion raised by U.S. companies. Unlike U.S. companies like SpaceX and Blue Origin, whose billionaire founders are willing to take big, expensive risks, Chinese companies that are late in launching must consider whether they can be backed by deep, risk-averse investors.
Some private companies, such as LandSpace and MinoSpace, have managed to attract foreign investment, which could make it easier for them to compete globally in terms of attracting foreign clients, launching from other countries, and attracting international talent.
More than half of them have been founded since 2014, a year after Xi Jinping took over as China’s new leader and the government decided to view civil space development as a key area of innovation. Private space ventures boast a wide range of offerings, from satellite manufacturing to rocket launches.
FutureAerospace, a state-funded industry think tank, says investment in Chinese commercial space firms totaled 3.57 billion yuan ($550 million) in 2018 and will exceed 30.6 billion yuan ($4.7 billion) by 2025.
The surge is fueled by growing demand for satellite launches. In the next decade, China plans to build vast constellations of commercial satellites that could offer services ranging from high-speed internet for airplanes to tracking coal shipments.
Read more CHINA NEWS China, Saudi Arabia pledge to deepen energy cooperation
To stimulate the commercial space industry, China uses belgium telegram database government contracts and subsidies to give these companies a leg up. However, state-owned commercial space companies like Expace and China Rocket may have easier access to government funding and Chinese financing. Private commercial space companies either receive government support or seek venture capital.
A 2019 report from the Institute for Defense Analyses estimated that VC funding for Chinese space companies reached $516 million in 2018, though that amount was far smaller than the $2.2 billion raised by U.S. companies. Unlike U.S. companies like SpaceX and Blue Origin, whose billionaire founders are willing to take big, expensive risks, Chinese companies that are late in launching must consider whether they can be backed by deep, risk-averse investors.
Some private companies, such as LandSpace and MinoSpace, have managed to attract foreign investment, which could make it easier for them to compete globally in terms of attracting foreign clients, launching from other countries, and attracting international talent.