Commercial space sector drives China's high-tech ambitions

Commercial space sector drives China's high-tech ambitions
by Simon Mansfield
Sydney, Australia (SPX) Apr 28, 2025

China's decision in 2016 to designate April 24 as Space Day underscores the nation's growing commitment to space exploration. This momentum has intensified with the launch of the Long March 12 rocket from Wenchang in November 2024, which marked the first mission from the country's dedicated commercial spacecraft launch facility.

This successful mission solidified the role of the Wenchang site as a hub for commercial space launches, anchoring China's ambitions in a rapidly expanding industry driven by technological innovation and market demand. Government backing, along with falling costs and accelerated innovation cycles, has fueled the ascent of China's commercial space sector.

Globally, the United States remains the leader, with the Satellite Industry Association reporting $400 billion in global space revenue in 2023, of which $285 billion came from commercial satellite operations. Companies like SpaceX exemplify the vibrancy and investment allure of the US market, which captured 51 percent of global space-related equity investment according to venture firm Space Capital.

While China entered the global space market later, opening international launch services to clients in 1985 via the Long March rocket family, its domestic industry has surged in recent years. Data from the China Association for Quality shows the commercial space sector growing from 0.6 trillion yuan in 2018 to 1.9 trillion yuan in 2023, reflecting a robust annual growth rate of 23 percent.

With strategic policy emphasis, including mentions in the 2024 government work report, China now views commercial space activity as a catalyst for high-quality growth and a pillar of national innovation. The country is positioning its space industry as a new driver of economic development and a showcase of advanced manufacturing capabilities.

Despite rapid company growth, the absence of commercial launch infrastructure had constrained the sector. The debut of the civilian-built Hainan spaceport changes this dynamic. Featuring streamlined mission organization and innovative management models, the Hainan facility completes China's commercial launch value chain from rocket production to satellite applications.

The Hainan site includes China's first adaptable pad for medium-lift liquid-fuel rockets. This No 2 pad supports a broad range of missions, offering high compatibility, quick turnaround, and improved cost performance. Remote-controlled tracking systems further enhance mission reliability and efficiency.

This launch center now enables fast-paced and cost-effective missions, supporting deployment of satellite constellations for commercial and civilian use. It provides a springboard for broader infrastructure development in low-Earth orbit.

The Long March 12, China's largest single-core rocket with a 3.8-meter diameter, uses a modular design to improve payload efficiency and reduce costs. A new horizontal pre-launch assembly and testing method also contributes to faster, safer, and cheaper launch operations by eliminating vertical assembly structures and reducing logistical overhead.

This innovation paves the way for high-frequency launch cycles and expanded access to sun-synchronous and low-Earth orbits, accelerating the country's efforts to build robust satellite networks.

In March, China launched 18 satellites using a Long March 8 from the Hainan facility's No 1 pad. The momentum continues as the Hainan government announces new policy incentives, including initiatives focused on rocket reusability and recovery.

China is also pushing forward with its satellite internet initiatives, aiming to offer global broadband access. Reduced launch costs and increased mission cadence are making China a major contender in the space economy as of 2025.

The country's sustained investment in commercial launch capabilities is expected to introduce new technologies and business models, reinforcing China's growing role in the global space arena.