In 2014, a year after Xi Jinping took office, the Chinese government issued a groundbreaking directive known as “Document No. 60.” This policy encouraged private investment in the space industry, marking a pivotal moment for China’s aerospace ambitions. Over the past decade, the sector has evolved into a vibrant ecosystem of startups competing to become the Chinese equivalent of SpaceX.
The liberalization of China's commercial space sector hasn’t only driven down the costs of building and launching satellites, as seen in the U.S., but also allowed the state-run China Aerospace Science and Technology Corporation (CASC) to focus on high-profile projects. These include the permanently inhabited Tiangong space station, operational since 2022, and the Chang’e lunar program, which achieved a historic milestone by returning the first samples from the moon’s far side to Earth.
Much like NASA’s approach in the U.S., the Chinese government has fostered its private space sector by sharing advanced technology—such as ballistic missile designs and propulsion systems—and providing access to essential infrastructure. Government contracts and subsidies further bolster these companies’ global competitiveness. However, what truly sets China apart is the sheer scale of its efforts.
Since 2014, nearly 100 satellite and rocket manufacturing startups have emerged, fueled by venture capital and support from provincial governments keen to attract high-tech industries. While not every subsidized company will succeed, the expectation is that the strongest players will survive. As a result, many of these companies operate across multiple locations: Beijing, the hub of political power; Shenzhen, renowned for its talent and engineering resources; Chongqing, with its robust industrial base; and other prefectures eager to invest in the burgeoning space sector.
Who will become China’s SpaceX? The answer is far from straightforward. Leading contenders include established firms like LandSpace, i-Space, Galactic Energy, Space Pioneer, and OrienSpace, as well as rising stars such as Deep Blue Aerospace, OneSpace, and the emerging CosmoLeap. Additionally, subsidiaries of state-owned giants—CAS Space, China Rocket, and ExSpace—are also racing to claim dominance in Earth’s orbit.
LandSpace
Image | LandSpace
Founded in 2015 and headquartered in Beijing, LandSpace has emerged as a leader in China’s new space industry. The company has raised $336 million in capital from private investors, including China Growth Capital and Sequoia Capital. Its founder and CEO, Zhang Changwu, has steered the company to become a pioneer in rocket innovation, holding over 800 patents.
LandSpace specializes in medium- and heavy-lift rockets and made history as the first company worldwide to launch a methane- and liquid oxygen-fueled rocket, the Zhuque-2. This rocket can carry up to four tons into low Earth orbit. The company is now working on the Zhuque-3, a significantly larger rocket with a payload capacity of up to 21 tons. The Zhuque-3 is designed for vertical landings, either on land or offshore platforms, mirroring SpaceX’s Falcon 9.
As part of its push for reusability, LandSpace has developed a steel-built reusable prototype that resembles a small spacecraft. This prototype has successfully completed vertical takeoff and landing (VTVL) tests, reaching heights of up to 6.2 miles.
i-Space
Image | i Space
Founded in 2016 as Beijing Interstellar Glory Space Technology, i-Space is LandSpace’s main rival in developing reusable methane-fueled rockets. Co-founded by Dongyi Zhang and Guosong Wu, i-Space has raised more than $375 million in funding from investors like Sichuan Venture Capital and CDH Investments.
In July 2019, i-Space made history when its Hyperbola-1 (SQX-1) solid-fuel rocket became the first Chinese commercial launch vehicle to reach orbit. However, a second launch attempt failed, prompting the company to shift its focus to developing methane and liquid oxygen engines.
The company has since discontinued the development of the Hyperbola-2 (SQX-2) rocket and is preparing for the debut of its successor, the Hyperbola-3 (SQX-3), in 2025. Modeled after SpaceX’s Falcon 9, the Hyperbola-3 is a 226-foot-tall rocket with a reusable booster capable of vertical landings. It can also be equipped with two side boosters, similar to the Falcon Heavy.
Galactic Energy
Image | Galactic Energy
Established in 2018 by Baiqi Liu, Galactic Energy has positioned itself as a significant player in China’s private space race. The company has secured over $400 million in funding from investors such as Dahua Group and Ziyang Heavy Industry Fund. Galactic Energy develops two main rocket families: the Ceres and the Pallas.
The Ceres series, designed for quick and customizable satellite launches, has been in operation since 2020. In September 2023, the Ceres 1S model became the first Chinese commercial launch vehicle to lift off from a barge at sea. This small, four-stage rocket relies on solid-fuel engines and does not feature a reusable design.
In contrast, the Pallas line is designed for heavier payloads and aims to deploy large satellite constellations. The upcoming Pallas 1A, a smaller version of SpaceX’s Falcon 9, features seven kerosene- and liquid oxygen-fueled engines and can carry up to eight tons. Its successor, the Pallas 1B, adds two side boosters, increasing its payload capacity to 17.5 tons. The Pallas 1B is slated for its first launch in 2026.
Space Pioneer
Image | Space Pioneer
This company stands as one of the best-funded players in China’s new space industry, with over $620 million raised since its founding in 2019 by Kang Yonglai, the former CTO of LandSpace. Backed by prominent investors like state fund CITIC and venture capital firm Paradigm, the company has made remarkable strides in rocket technology.
In April 2023, Space Pioneer became the first private Chinese company to successfully launch a liquid-fueled rocket into orbit: the Tianlong-2. The company is now focused on developing the Tianlong-3, a larger capacity rocket comparable to SpaceX’s Falcon 9.
While still undergoing testing, the Tianlong-3 has already made headlines for a dramatic accident during a static test launch at the company’s Gongyi facility. When its nine kerosene- and liquid-oxygen-fueled engines ignited, the test stand collapsed, propelling the rocket into a nearby mountain.
OrienSpace
Image | OrienSpace
Founded in 2020 by Yao Song, OrienSpace has quickly made a name for itself, raising $100 million in private funding and becoming renowned for launching the world’s most powerful solid-fuel rocket from a specially designed ship.
This rocket, called Gravity-1, is a three-stage design equipped with four side thrusters, capable of putting 6.5 tons into orbit. Its launches, conducted from a 531-feet tanker converted exclusively for space use, attract thousands of spectators to the coast of Haiyang in eastern China.
OrienSpace plans to focus on launching satellite constellations. Its upcoming rocket, Gravity-2, will feature a liquid-fueled first stage with vertical landing capabilities. Augmented by two solid-fuel side boosters, it will have a payload capacity of up to 26 tons.
Deep Blue Aerospace
Deep Blue Aerospace, also known as Shenlan Space, was founded in 2016 and has become a rising star in China’s space sector. Headquartered in Wuxi, Jiangsu Province, the company also operates a liquid-fuel engine research center in Beijing.
In September 2023, Deep Blue gained global attention when a VTVL test of its Nebula-1 prototype went awry, resulting in stunning drone footage of the mishap. Despite the setback, the Nebula-1 serves as a precursor to the larger Nebula-2, which is expected to carry up to 20 tons to low Earth orbit. Both rockets use kerosene and liquid oxygen engines. In addition to its rocket projects, Deep Blue is developing a suborbital capsule for space tourism, drawing comparisons to Blue Origin’s designs.
OneSpace
Image | OneSpace China
One Space Technology Group, founded in 2015, made history as the first private Chinese company to launch a commercial rocket in 2018. However, it has maintained a relatively low profile compared to its competitors.
With $120 million in funding, OneSpace is focused on developing OS-M micro-launchers to deploy lightweight satellites, positioning itself as the Chinese equivalent of Rocket Lab.
CosmoLeap
The newest entrant in China’s New Space sector, CosmoLeap, was founded in 2024 and has already raised $15 million. Its ambitious goal is to develop a reusable rocket that lands using robotic arms mounted on its launch tower, inspired by SpaceX’s Mechazilla system.
State-Owned Aerospace Companies
Launched in 2018 with the support of the Chinese Academy of Sciences, CAS Space operates with commercial goals despite being a state-backed entity. Its Kinetica-1 solid-fuel rocket can place up to two tons into low Earth orbit, while its upcoming Kinetica-3 aims to carry 20 tons into heliosynchronous orbit. Both rockets feature reusable first and second stages.
Image | CAS Space
As the commercial arm of the state-owned CASC, China Rocket focuses on innovative launch solutions. Its Smart Dragon-3 rocket, a four-stage solid-fuel vehicle, can launch from floating sea platforms and deliver payloads of up to two tons into orbit.
A subsidiary of CASIC, ExPace specializes in the development and commercial launch of solid-fuel rockets, including the Kuaizhou family. While it is also working on VTVL technology for vertical landings, its models remain less advanced than those of LandSpace or i-Space.
Image | LandSpace
View 0 comments