China's Commercial Space Sector Grows as a New Force in Quality Production
China's commercial space industry is emerging as a competitor to SpaceX by providing affordable satellite internet, effectively closing the digital divide worldwide and driving growth in the sector.
TroibNews 
It's the second occasion that China's government work report has referred to the commercial aerospace sector as a "new quality productive force."
In the work report delivered by Premier Li Qiang on behalf of the State Council, he articulated China's ambition to "develop new quality productive forces in light of local conditions and foster emerging industries." This report was presented at the opening session of the third meeting of the 14th National People’s Congress on Wednesday in Beijing.
Premier Li stated that China will "promote safe and sound development of commercial space, the low-altitude economy, and other emerging industries."
The term new quality productive forces, which was first introduced in 2023, signifies a type of advanced productivity that breaks away from traditional economic growth models and the usual paths of productivity development. These forces are characterized by high technology, high efficiency, and high quality, as seen in sectors like artificial intelligence, big data, and new materials.
Since 2014, as China has gradually built an industrial chain for its commercial aerospace sector, leading enterprises have become increasingly essential. These companies are enhancing cross-industry production capabilities and driving broader industrial progress.
For instance, Galaxy Space, a satellite company based in Beijing and established in 2018, has notably expanded its operation, which has subsequently widened the prospects for its OEM partners. The number of suppliers for Galaxy Space has surged from 100 to over 1,300.
"These enterprises used to exclusively serve ground-based industries like the automotive industry and machinery processing, but as we entered this sector and the industry continues to thrive, we've essentially opened up a new aerospace market for these supply chain partners," Liu Chang, co-founder of Galaxy Space, shared with CN.
Additionally, Galaxy Space was the sole representative of the commercial space sector at a recent symposium on private enterprises.
Starlink Rival in China
Since the start of the commercialization of space activities in China in 2014, numerous pioneers have emerged claiming to compete with Elon Musk's SpaceX.
While SpaceX has successfully launched multiple satellites in a single mission for its Starlink constellation using the Falcon 9 and has undertaken several Starship test flights, China has yet to see a reusable rocket complete its first orbital flight.
Conversely, China's satellite industry appears more prepared.
"Indeed, we consider Starlink to be an extremely competitive rival," Liu stated, noting that Galaxy Space's satellite technology "matches Starlink's capabilities within the same technical spectrum."
Recent developments have showcased progress.
In 2024, China conducted two vertical takeoff and landing (VTVL) tests with reusable rockets, one of which involved LandSpace—a private rocket company achieving a significant milestone with a high-altitude VTVL test.
This VTVL test is critical as it validates essential technologies for retrieving and landing a rocket, paving the way for successful orbital launches. Appropriate advancements in reusable rocket stability will greatly reduce the costs associated with satellite launches.
Last year at Airshow China in Zhuhai, more commercial space businesses showcased their reusable rocket models and set goals for their inaugural flights in 2025.
"I think the continued support from the Chinese government for space infrastructure is accelerating approval processes for LEO constellation construction. This institutional backing enables faster deployment of China's mega-constellations," Liu commented.
Global Strategies for Equal Accessibility
Starlink's satellite internet service is priced at $99 per month, which, while crucial for residents in remote areas, is considered excessive in a nation where nearly 5 million 5G base stations have been established.
For Galaxy Space, the greater opportunity lies internationally.
According to Liu, the market potential in countries partnering with China on the Belt and Road initiative is vast, particularly as many of these nations lack the infrastructure for basic telecommunications. Consequently, most of their populations rely on 3G or 4G networks, lacking access to affordable and inclusive communication services.
"We are essentially helping them leap directly from 3G and 4G to 6G. By providing high-speed, ubiquitous satellite internet connections, we enable all people – ordinary citizens – to access affordable communication services," she explained.
Liu boldly predicted that "in five to 10 years, or even sooner," China's satellite internet service will likely be cheaper than current 5G offerings.
Mathilde Moreau contributed to this report for TROIB News
In the work report delivered by Premier Li Qiang on behalf of the State Council, he articulated China's ambition to "develop new quality productive forces in light of local conditions and foster emerging industries." This report was presented at the opening session of the third meeting of the 14th National People’s Congress on Wednesday in Beijing.
Premier Li stated that China will "promote safe and sound development of commercial space, the low-altitude economy, and other emerging industries."
The term new quality productive forces, which was first introduced in 2023, signifies a type of advanced productivity that breaks away from traditional economic growth models and the usual paths of productivity development. These forces are characterized by high technology, high efficiency, and high quality, as seen in sectors like artificial intelligence, big data, and new materials.
Since 2014, as China has gradually built an industrial chain for its commercial aerospace sector, leading enterprises have become increasingly essential. These companies are enhancing cross-industry production capabilities and driving broader industrial progress.
For instance, Galaxy Space, a satellite company based in Beijing and established in 2018, has notably expanded its operation, which has subsequently widened the prospects for its OEM partners. The number of suppliers for Galaxy Space has surged from 100 to over 1,300.
"These enterprises used to exclusively serve ground-based industries like the automotive industry and machinery processing, but as we entered this sector and the industry continues to thrive, we've essentially opened up a new aerospace market for these supply chain partners," Liu Chang, co-founder of Galaxy Space, shared with CN.
Additionally, Galaxy Space was the sole representative of the commercial space sector at a recent symposium on private enterprises.
Starlink Rival in China
Since the start of the commercialization of space activities in China in 2014, numerous pioneers have emerged claiming to compete with Elon Musk's SpaceX.
While SpaceX has successfully launched multiple satellites in a single mission for its Starlink constellation using the Falcon 9 and has undertaken several Starship test flights, China has yet to see a reusable rocket complete its first orbital flight.
Conversely, China's satellite industry appears more prepared.
"Indeed, we consider Starlink to be an extremely competitive rival," Liu stated, noting that Galaxy Space's satellite technology "matches Starlink's capabilities within the same technical spectrum."
Recent developments have showcased progress.
In 2024, China conducted two vertical takeoff and landing (VTVL) tests with reusable rockets, one of which involved LandSpace—a private rocket company achieving a significant milestone with a high-altitude VTVL test.
This VTVL test is critical as it validates essential technologies for retrieving and landing a rocket, paving the way for successful orbital launches. Appropriate advancements in reusable rocket stability will greatly reduce the costs associated with satellite launches.
Last year at Airshow China in Zhuhai, more commercial space businesses showcased their reusable rocket models and set goals for their inaugural flights in 2025.
"I think the continued support from the Chinese government for space infrastructure is accelerating approval processes for LEO constellation construction. This institutional backing enables faster deployment of China's mega-constellations," Liu commented.
Global Strategies for Equal Accessibility
Starlink's satellite internet service is priced at $99 per month, which, while crucial for residents in remote areas, is considered excessive in a nation where nearly 5 million 5G base stations have been established.
For Galaxy Space, the greater opportunity lies internationally.
According to Liu, the market potential in countries partnering with China on the Belt and Road initiative is vast, particularly as many of these nations lack the infrastructure for basic telecommunications. Consequently, most of their populations rely on 3G or 4G networks, lacking access to affordable and inclusive communication services.
"We are essentially helping them leap directly from 3G and 4G to 6G. By providing high-speed, ubiquitous satellite internet connections, we enable all people – ordinary citizens – to access affordable communication services," she explained.
Liu boldly predicted that "in five to 10 years, or even sooner," China's satellite internet service will likely be cheaper than current 5G offerings.
Mathilde Moreau contributed to this report for TROIB News
