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China’s commercial space sector: advancing from tech verification to commercial scale

by sharma
May 18, 2026
in China
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China’s commercial space sector: advancing from tech verification to commercial scale
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By Liu Shiyao, People’s Daily
China’s commercial space sector is accelerating its transition from technology verification to large-scale commercial operations, driven by both policy support and growing market demand. This shift supports the nation’s strategy to establish a sustainable space economy.
This year has already seen a series of major milestones: the triumphant maiden launch of the Lijian-2 Y1 carrier rocket, the successful suborbital flight test of the maiden Lihong-1 Y1 spacecraft, and continued progress in satellite internet construction, with multiple groups of low-Earth-orbit satellites sent into space.
One major focus is reusable rocket technology.
The Gravity-2 carrier rocket is scheduled to make its maiden flight in the second half of this year, alongside critical trials of reusable launch technology. Meanwhile, the Lanyan 220-ton liquid oxygen-methane full-flow staged combustion engine has passed a full-system long-duration test, accelerating efforts to build an efficient and reusable heavy-lift propulsion system.
Besides, Chinese leading provider of satellite Internet solutions and satellite manufacturer GalaxySpace has sent the world’s first satellite with a large-scale flexible solar wing into the orbit.
Across rockets, satellites, manufacturing, and applications, Chinese aerospace firms are driving cost reduction and scalability through independent innovation.
Among them, reusable rocket technology has become a major industry focus, driven by sustained large-scale launch demand and the still-high cost of expendable rockets. Experts estimated that once reusable technology is fully achieved, total launch costs could be reduced by 40 to 60 percent.
Aerospace equipment is more and more becoming industrial products.
Strong manufacturing capacity is the foundation for high-frequency commercial launches. Mass-producing rockets and satellites the way cars and smartphones are manufactured is becoming a shared goal across the industry.
Take the Lijian-2 rocket as an example: its core stage and two boosters are designed to look almost identical.
Lian Jie, deputy chief designer of Lijian-2, explained that this design is known as a “common booster core” configuration. Its major components can standardized for mass production and modular assembly, greatly simplifying manufacturing workflows.
Because key parts share standardized dimensions, if a problem is discovered before launch, the faulty component can be quickly replaced and reassembled onto the rocket. This makes it easier to build a high-frequency launch capability.
A super factory for the large liquid-fuel Lijian-2 rocket is about to be fully completed and put into operation, providing strong support for large-scale production and scheduled, airline-style launch services.
Commercial aerospace is redefining how space manufacturing is understood — from pure-customized products to assembly-line production, and from scarce items to industrial products.
GalaxySpace’s smart satellite factory has already established a complete manufacturing chain for satellites weighing between 100 and 2,000 kilograms. Its annual production capacity for medium-sized satellites remains stable at 100 to 150 units, while satellite development cycles have been shortened by 80 percent compared with traditional production models.
Launch sites are also improving efficiency. To meet the launch demand of the Long March 8 carrier rocket, the Launch Pad 1 at the Hainan commercial spacecraft launch site in south China’s Hainan province, has achieved a rapid operational cycle: seven days for launch preparation and another seven days for post-launch recovery.
Commercial aerospace industrial clusters are taking shape.
Many regions across China are speeding up efforts to develop commercial aerospace and create a more complete industrial ecosystem.
In Beijing, a satellite town planned is under construction, featuring dedicated zones for satellite research and development, satellite operations, and applications. Supporting facilities such as a satellite exhibition center, exchange hub, and incubation center will also be built.
Not far from there, a “rocket street” is home to a cluster of commercial rocket enterprises, fostering a tightly integrated industrial ecosystem where upstream and downstream industries gather within close proximity.
In Haiyang, east China’s Shandong province, the Oriental Maritime Space Port is building a full-chain commercial aerospace system.
There, an “aerospace avenue” closely connects rocket assembly and testing workshops, a satellite industrial park, a data application center, and the launch terminal. After a rocket is completed in the assembly plant, it takes only a little more than 10 minutes by road to reach its dedicated dock, where it can be smoothly transferred onto a launch vessel.
In recent years, China has introduced a series of favorable policies to support the development of commercial aerospace. As satellite data becomes more deeply integrated with sectors such as the digital economy and smart cities, commercial application scenarios continue to expand. With a more open and orderly market environment taking shape, China’s commercial aerospace industry is expected to inject stronger new momentum into the country’s economic and social progress.

sharma

sharma

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