Ready for blast-off: Can China's commercial space firms replicate SpaceX magic?
– On a clear morning on May 17, a methane-fuelled rocket thundered off its launchpad in the Gobi Desert, piercing the sky over northwestern China carrying six satellites into orbit.
This marked the fifth successful flight for LandSpace, one of China's rising commercial aerospace companies, and underlined Beijing's ambition to catapult its commercial space sector onto the global stage.
Two days later, Galactic Energy, another fast-growing Chinese space player, launched a rocket from a ship at sea off eastern Shandong province, deploying four satellites into orbit.
The number of rocket launches in China by both state-owned and private firms is expected to hit a record high in 2025, according to Chinese industry reports, amid plans to ramp up investment in the sector.
So far, China has carried out more than 30 orbital launches, including at least six in June, with more on the horizon. In 2024, the country recorded 68 orbital launches and in 2023, 67 launches.
China's space sector used to be tightly controlled by the state until it was opened up to private companies in 2015.
Today, there are over 500 commercial space companies in China.
China's commercial space market is projected to balloon from around 2.8 trillion yuan (S$497.9 billion) in 2025 to over 6.6 trillion yuan by 2029, according to various research estimates.
In 2024, the Chinese government listed the commercial space sector as a 'new engine of economic growth' in its government work report for the first time, prompting cities such as Beijing and Shanghai to roll out plans to accelerate investment in the sector.
Private firms offer services such as space tourism, satellite internet, Earth imaging for farming or city planning purposes as well as private rocket launches for putting small satellites into orbit.
In Beijing's southern Daxing district, more than 160 aerospace-related enterprises have formed a cluster nicknamed 'Rocket Street'. The city is building an exhibition hall where visitors, from the second half of 2025, can watch real-time launches of commercial rockets across China.
Catching up with the US
China's space startups are chasing what analysts call the 'SpaceX moment' or a breakthrough that sees a private Chinese space firm rival Elon Musk's rocket giant on the global stage.
SpaceX is the undisputed industry leader, accounting for more than half of the world's 259 orbital launches i n 2024. It is largely thanks to its reusable Falcon 9 workhorse, which has reduced costs for its customers.
At least six Chinese commercial space companies have so far successfully launched rockets into orbit. But none have yet to launch and recover a reusable rocket in the way SpaceX has done so since 2017.
China's progress is evident, but it still lags far behind the US , said Mr Clayton Swope, deputy director of the Aerospace Security Project at the Center for Strategic and International Studies (CSIS).
'China has not been able to replicate the SpaceX magic, but arguably no other company anywhere has been able to do space at scale like SpaceX,' he said.
Investors in China hoping to emulate SpaceX's success have poured money into Chinese private space companies with launch capabilities. Bu t these Chinese firms operate on 'a very small scale', especially compared with SpaceX or Rocket Lab, which is founded in New Zealand but headquartered in the US.
Rocket reusability lies at the crux of China's commercial space ambitions, as it is a key factor in cutting launch costs and attracting clients outside of China.
Dr Svetla Ben-Itzhak, assistant professor of space and international relations at Johns Hopkins University's School of Advanced International Studies, said that while China's private firms are about five to seven years behind SpaceX in reusable launch technology, the gap could close more rapidly given advances in propulsion and accelerated development cycles.
Chinese aerospace firms are optimistic about their prospects, with at least two founders of these companies saying that they could match SpaceX's capabilities by 2030.
LandSpace founder Zhang Changwu, for instance, said in a June interview that the next three to five years will be a 'decisive period' for China's commercial space industry. His company is aiming for China's first orbital reusable flight by the end of 2025.
Space tourism looks set to be launched in China soon.
Deep Blue Aerospace, a Chinese firm developing reusable rockets, plans to conduct a 12-minute suborbital flight – meaning the rocket will reach outer space but not enter orbit – for space tourists in 2027.
Its first two tickets, priced at 1.5 million yuan, were snapped up the moment they went on sale in October 2024. Meanwhile, state-backed CAS Space has pledged to begin space tourism flights by 2028.
However, barriers remain for Chinese firms eyeing global markets.
'International customers want high reliability rates and China's commercial launchers generally just don't have that yet,' said CSIS' Mr Swope.
Lingering trust issues with China may also hold back international interest in using China's space services for launch, remote sensing or broadband, he said.
'Due to geopolitical developments, would a Chinese company shut off service to international customers? Are there security concerns arising from the use of a Chinese company?' said Mr Swope.
Dr Ben-Itzhak echoed these sentiments, noting that the distrust of Chinese tech is the main hindrance, largely due to perceived and often explicit links to the Chinese government and military, and concerns over transparency.
There have also been setbacks in China's commercial space push.
In June 2024, a test rocket by Chinese firm Space Pioneer malfunctioned and crashed in central Henan province. No one was hurt, but the company compensated locals for damaged buildings.
Months later, in December, the initial public offering (IPO) of Jilin-based satellite firm Chang Guang Satellite Technology was abruptly halted, raising fresh doubts about the sector's profitability and long-term prospects.
Even so, Chinese companies, particularly state-owned ones, are making inroads in markets that are friendlier to China. In November 2024, CAS Space's commercial rocket delivered a remote-sensing satellite for Oman, marking a key step into the international market.
Analysts said a breakout moment for China's space startups may not just come from reusable rockets but could also come in the form of a high-profile IPO, securing more foreign clients or completing a broadband satellite mega-constellation akin to Starlink.
SpaceX now has more than 7,800 Starlink satellites in operation. In comparison, China's two main competitors, Guowang and Qianfan, have deployed about 50 and just under 100 satellites respectively.
Still, Qianfan has inked partnerships to offer satellite communications in Brazil, Malaysia and Thailand and is eyeing dozens of other markets in Asia, Africa and Latin America.
Dr Ben-Itzhak said if a private Chinese company breaks through globally, it would not only challenge US commercial dominance but could also change perceptions of China from being a state space power to an innovation leader in space tech.
'This would be comparable to Huawei's rise in telecom,' she said. 'But this time, with rockets and satellites.'
Michelle Ng is China Correspondent at The Straits Times. She is interested in Chinese foreign policies, property trends, demographics, education and rural issues.
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
4 minutes ago
- CNA
Can jewellery brand Laopu become the Cartier of China?
'No one can leave Laopu Gold empty-handed,' says one post on the Chinese photo-sharing app Xiaohongshu, under a shot of a user wearing a white T-shirt and gold-and-diamond-encrusted butterfly charm. 'Laopu's dragon and phoenix pendant that was out of stock for a month finally landed in my hands,' says another, next to a chunky oval pendant with tassels and carved with the mythical creatures that symbolise harmony and auspiciousness in traditional Chinese culture. There are hundreds of thousands of posts like this on the social media platform also known as RedNote, where Laopu — a homegrown purveyor of finely crafted gold jewellery that combines Chinese heritage with a modern edge — has surged in popularity in recent years. Its tongue-in-cheek nickname in China these days? The 'Hermes of gold'. The company has been an outlier in the Chinese luxury market, where appetite for splurging on expensive products by western brands is dwindling because of sluggish consumer confidence. Laopu, which literally translates as 'old shop,' was started in 2009 by Xu Gaoming, 60, as a retail counterpart to his gold business Golden Treasury. Xu, who started his career working for the Yueyang livestock and aquatic bureau in Hunan province before branching out into tourism investment and gold, jewellery and antiques trading, has been tapping into what is known as guochao. Translating as 'national wave' — or a preference for products and brands that include or reference Chinese heritage elements — it is now a powerful force shaping Chinese consumer psychology. Laopu is targeting middle- and upper-class shoppers who see gold jewellery as a smart investment amid economic instability, but who have also developed a taste for branded items that focus on craftsmanship, design and storytelling. That approach appears to be working. In 2024, Laopu's revenue was up 167 per cent year-on-year to Rmb8.5 billion (US$1.1 million), more than six times what it was in 2021. Profits after tax were up 253 per cent year on year, to Rmb1.4 billion. The company, which declined interview requests from the Financial Times, said revenue reached Rmb12 billion in the first half of 2025, with net profits of Rmb2.2 billion. Laopu uses a number of traditional techniques recognised as part of China's cultural heritage, including gold, silver and filigree inlay. A simple gold band costs around Rmb5,080, but more complex pieces, such as the aforementioned dragon and phoenix pendant, can reach Rmb85,180. Unlike older traditional gold businesses such as Chow Tai Fook, Chow Sang Sang and Lao Feng Xiang, whose jewellery is mostly purchased for gifting and ceremonial occasions, Laopu has fashioned itself as a provider of meaningful pieces that can be worn anytime and anywhere. 'The product design borrows from Chinese culture, so the items themselves look traditional, but they are made to be worn at work, to parties — you wear [Laopu] every day, not only at weddings,' says Laura Yu, a luxury shopper, founder of lab-grown diamond brand Circe and former tech investor, who says many of her employees wear Laopu at work. Repeatable, margin-rich jewellery designs have long been a cash cow for many western luxury brands. Laopu's growth hasn't been unnoticed abroad, with analysts and investors now questioning how much of a threat the brand could pose for established international players such as Cartier, Tiffany & Co and Van Cleef & Arpels. 'Laopu is a bit of a phenomenon because it's neither a branded western brand nor a local commodity-driven retailer,' says Erwan Rambourg, global head of consumer and retail research at HSBC. 'The interest of Laopu is that they are more about design than weight of gold. They are not purely commoditised, but they are local Chinese. It's a hybrid proposition which seems to be gaining a lot of traction.' The product design borrows from Chinese culture, so the items look traditional, but are made to be worn at work, to parties Most domestic brands have struggled to break into the luxury sphere (with few exceptions such as Kering-owned Qeelin), but Laopu appears to be building trustworthy heritage credentials among both consumers and rivals alike. Nicolas Bos, chief executive of Richemont — a group, like other western luxury conglomerates, that has reported double-digit sales declines in China — noted on a call this year that 'Laopu Gold is a fantastic example of a new Chinese brand that's very much rooted in Chinese culture. It has also integrated and understood some of the codes of international luxury and is developing a very, very unique and differentiated offer.' To strengthen its luxury image, Laopu has carefully selected where to open its 41 stores, sticking to high-end malls including Beijing's SKP Mall, Shanghai's Plaza 66 and Singapore's Marina Bay Sands, where it opened its first international boutique in June. It also provides loyal customers with VIP perks, including access to in-store private rooms with one-on-one services like its western counterparts. And while Chinese traditional gold brands often price their products according to their weight and following the daily market fluctuations of gold prices (plus a small labour fee), Laopu operates with fixed prices that include a higher premium for its craftsmanship and design than others would charge. It also increases prices two to three times per year. According to Adam Knight, co-founder of Chinese social commerce technology provider Yaso, a key part of Laopu's success has been its marketing strategy on Xiaohongshu, where it has managed to build popularity among a number of key opinion leaders (KOLs) and key opinion customers (KOCs), avoiding more mass market techniques such as live-streaming. 'It's quite an elevated and mature digital strategy,' he says. The brand's fast growth has also attracted investor cash. Since its IPO last June, its share price has increased more than 14 times. Laopu is now included in the 'three sisters', a group of consumer brands that have hyper performed on the Hong Kong Stock Exchange post-float; these also include the toy company Pop Mart which creates Labubus and fast-food chain Mixue. Some, however, are starting to question how sustainable Laopu's growth is. On Xiaohongshu, alongside posts praising the brand's gold jewellery, other netizens discuss the brand's cash reserves, high investment in inventories and low gross profit margins (it hovers around 41 per cent compared to luxury standards of 60 to 80 per cent) with posts titled 'Let's talk about Laopu's big risk'. 'In the past few months we have seen a slowdown in Laopu's popularity,' says Veronica Wang, partner at OC&C Strategy Consultants in Hong Kong, who notes discounts and fewer queues outside stores. She adds that the market has also been flooded by cheaper alternatives featuring similar designs. 'The price of gold is very transparent. What they have managed to do before was to charge a very high premium over the gold product that was justified by the craftsmanship. But if consumers can find similar products with much lower premium charge then some of them might shift away.' And among some luxury consumers, Laopu is still seen as a lower-tier brand compared with international European luxury names. Yu, who favours brands such as The Row and Alaïa, says those who wear Laopu are 'very typical urban middle-class' people. 'Me and my friends, we are not clients of Laopu,' she says. 'Its products are for young professionals or the middle upper class here in China. I don't think it touches the clients of Chanel or Hermes. Laopu hurts the traditional gold brands more than the luxury brands.'
Business Times
34 minutes ago
- Business Times
No plans to bring Formula 1 GP back to Malaysia, sports minister says
[KUALA LUMPUR] Malaysia has no plans to bring back the annual Formula One (F1) race due to high sponsorship costs and a tight racing calendar, its sports minister Hannah Yeoh told parliament on Thursday (Aug 21). Malaysia previously hosted a leg of the F1 world championship at its Sepang International Circuit (SIC) between 1999 and 2017. Yeoh said the event would require a commitment of around RM300 million (S$91 million) annually for between three to five years, an amount that is more than double the government's development costs for 20 national sports programmes. Malaysia would also have to compete with other hosting countries in South-east Asia, such as neighbouring Singapore and Thailand, for a spot on the tournament calendar, Yeoh said. The Thai government in June approved a US$1.2 billion bid to host a F1 race in Bangkok in 2028. Malaysia, however, remains open to hosting the event if any private companies are willing to bear the costs, Yeoh said, adding that interested parties can get in touch with the SIC for further discussions. 'The Formula 1 is a prestigious sports event that is followed by fans around the world. So if we could afford it, it would be good to have it in Malaysia,' she said. State energy firm Petroliam Nasional Berhad, or Petronas, which is wholly-owned by the government, holds the naming rights to the SIC, which continues to host MotoGP races and other motorsports events. Reuters reported last year that Petronas was planning to bring F1 back to Malaysia in 2026, citing sources, though the company said that it had not held discussions to bring the race back to the SIC. REUTERS
Business Times
2 hours ago
- Business Times
Of the top 10 billionaires in Asia, 7 are from China
[SINGAPORE] Some of the richest billionaires in the world are from Asia, and helm companies across a variety of sectors such as software and technology, energy, consumer and retail. Of the top 10, seven are from China. But amid this year's volatility, how are the net worths of the top billionaires in Asia affected? Trump's tariffs have affected major trading partners to varying degrees, and different sectors. Markets have also see-sawed this year in response. China's stock market, however, has been on the rise in the past few months. The Shanghai Composite Index closed at its highest level in a decade at 3,728.03 on Aug 18, Reuters indicated. Here are Asia's 10 richest billionaires and how much their net worth has gone up or down, based on Bloomberg data: 1. Mukesh Ambani Mukesh Ambani, the chairman and managing director of his family business and multinational conglomerate Reliance Industries, is the richest man in Asia. He is ranked 16th in the world, with a net worth of US$99.6 billion, up 9.9 per cent or US$9 billion year to date (YTD). He was in charge of creating the world's largest grassroots petroleum refinery in Jamnagar, India. In 2010, it was producing 660,000 barrels per day, or 33 million tonnes per year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up His father, Dhirubhai Ambani, founded Reliance Industries in 1958. It began as a small venture firm trading commodities – especially spices and polyester yarn. Born on Apr 19, 1957, the younger Ambani joined the company at the age of 24, first taking charge of a yarn manufacturing project. To date, the business has diversified into the areas of energy, petrochemicals, retail and telecommunications, with a total market capitalisation of 20.7 trillion rupees (S$308.3 billion). The younger Ambani also owns the Mumbai Indians cricket team. 2. Gautam Adani The 63-year-old is the founder of Adani Group, one of India's major infrastructure conglomerates. His net worth stands at US$77.3 billion, down 1.8 per cent or US$1.4 billion YTD. Adani is the 21st richest man in the world. Adani Group is the largest private port operator in India with a market capitalisation of over 200 billion rupees, handling around 25 per cent of the nation's cargo and more than 10 ports. Its power arm – Adani Power – has a capacity of 15,250 megawatts, and emerged as India's largest power producer in 2014. Adani was a Mumbai diamond trader for Mahendra Brothers in 1978, before he started Adani Group's flagship company Adani Enterprises in 1988. He was kidnapped and held for ransom in 1997, and was formerly the richest person in Asia, having surpassed the older Ambani in February 2022. 3. Zhong Shanshan Zhong is the founder and chairman of Chinese bottled water and soft drink company Nongfu Spring. He has a net worth of US$68.5 billion, which increased US$13.6 billion YTD, and is China's richest billionaire. The Hangzhou-based beverage business recorded a revenue of 42.9 billion yuan (S$7.7 billion) in 2024, as the largest bottled water maker in China. It is also one of the biggest beverage companies in the world, having beaten Coca-Cola, Pepsi and Watsons before as a best-selling packaged beverage brand. The businessman is also the major shareholder of Beijing Wantai Biological Pharmacy Enterprise, a vaccine and hepatitis test kit manufacturer with a revenue of 2.2 billion yuan last year. He is ranked as the 24th richest man in the world. 4. Ma Huateng Ma is the co-founder and chief executive of Tencent, a Chinese instant messaging, mobile gaming and online payment service provider. His net worth is valued at US$64.3 billion, with a 33.3 per cent YTD increase of US$16 billion. He also goes by the English nickname 'Pony', as Ma means horse in Chinese, and is China's second richest man and 25th richest in the world. Ma was a deputy to the Shenzhen Municipal People's Congress and a delegate in the 12th National People's Congress before. His company, based in Shenzhen, reported revenue of 660 billion yuan for 2024, and owns China's largest instant messaging service WeChat. Chinese artificial intelligence chatbot DeepSeek in May acknowledged Tencent's role in offering a technical solution to address a persistent issue in its system. 5. Zhang Yiming Zhang is the co-founder of Bytedance, the social media group behind video-sharing app TikTok. His net worth stands at US$59.6 billion, up US$15.7 billion YTD, as the 27th richest man in the world. The Chinese Internet entrepreneur founded his Beijing-based company in 2012, which owns news aggregator service Toutiao and Douyin (TikTok in mainland China and Hong Kong). His company also bought in 2016 for US$800 million and integrated it into TikTok. The surging popularity of TikTok in recent years has propelled Zhang's wealth, leading him to become the richest man in China in 2024. He stepped down as Bytedance's CEO in May 2021, though he continues to hold over 50 per cent of the company's voting rights. 6. Tadashi Yanai The 76-year-old Japanese CEO and founder of Fast Retailing, the parent company of popular clothing brand Uniqlo, has a net worth of US$51.5 billion. His net worth is up 1.1 per cent YTD or US$575.3 million, and he continues to be the richest man in Japan. Fast Retailing is the largest clothing retailer in Asia, and owns other brands besides Uniqlo such as GU, J Brand and Theory. The CEO is known for checking stores unannounced, and is rarely recognised, based on Bloomberg Intelligence. Yanai was also an independent director on Japanese technology conglomerate SoftBank's board for 18 years, before stepping down in 2019. He has a house in central Tokyo with a mini-golf range in the garden, and also owns two golf courses on the Hawaiian island of Maui. 7. Lei Jun Lei is the founder and chairman of Chinese smartphone maker Xiaomi, which is often seen as a competitor of Apple and Samsung. His net worth is valued at US$44.1 billion, which has risen by US$14.4 billion or 48.7 per cent YTD, as the fourth-richest man in China. He is also known as the 'Steve Jobs in China'. The billionaire's company was named a Fortune Global 500 company in 2019, becoming the youngest corporation on the list at the time. Xiaomi is known to sell its products at cheaper and more competitive prices, such as when the company's handset in China was a third of the price of Apple's iPhone 5. Before he founded Xiaomi, Lei was CEO of software developer Kingsoft. He has served as congressman of the National People's Congress since 2013. 8. Robin Zeng Yuqun The founder and chairman of Chinese battery manufacturer Contemporary Amperex Technology (CATL) has a net worth of US$42.6 billion, up 10 per cent YTD or US$3.9 billion. Zeng first founded Amperex Technology (ATL) in 1999 with two others, where the company produced lithium polymer batteries for digital gadgets such as iPhones. In 2012, Zeng and his vice-chairman Huang Shilin hived off the electric vehicle battery operations of ATL into CATL. CATL listed on the Shenzhen Stock Exchange in 2017, and the group has ventured into the areas of renewable energy and electrical energy storage systems since 2024. 9. Colin Huang The Chinese businessman, investor and philanthropist is the founder of e-commerce company Pinduoduo (PDD Holdings), the largest agriculture online retailer in China. His net worth stands at US$41.7 billion, up US$7.5 billion or 22 per cent YTD. Founded in 2015, Shanghai-based PDD Holdings also owns popular online marketplace platform Temu. The company was listed on the Nasdaq in 2018, after it raised US$1.6 billion in investment-backed capital. Huang stepped down as CEO of the company in 2020 but remained its chairman until 2021. He was named the leading philanthropist on the 2021 Hurun China Philanthropy List, after he pledged US$1.85 billion for social responsibility projects and scientific research. 10. Jack Ma The Chinese billionaire is the co-founder of Chinese e-commerce company Alibaba Group with a net worth of US$41.6 billion, up US$7.4 billion or 21.6 per cent YTD. He started the business with US$60,000 in cash gathered from 18 people, based on Bloomberg Intelligence. Co-founded in 1999 and based in Hangzhou, Alibaba Group runs popular online shopping site Taobao and Tmall, a facilitator of online stores. It recorded revenue of 996 billion yuan in the year ended March. In 2020, he disappeared from the public eye after his outspoken criticism of regulators derailed Ant Group's initial public offering in 2020 – until his political rehabilitation became more clear when he appeared at a Beijing summit hosted by Xi Jinping on Feb 17 with other top corporate leaders.
