China's commercial aerospace sector has been highlighted for the second consecutive year in the government work report as a key driver of 'new quality productive forces,' signaling its strategic role in the nation's economic transformation. Premier Li Qiang emphasized the sector's development during the annual legislative session, reinforcing plans to foster innovation while prioritizing safety and sustainability.
The term 'new quality productive forces,' introduced in 2023, reflects China's push to transition from traditional industries to high-tech sectors like artificial intelligence, commercial space, and advanced materials. Since 2014, China has cultivated a robust commercial space supply chain, with firms such as Galaxy Space accelerating cross-industry collaboration. From 100 suppliers in 2018, the Beijing-based satellite maker now collaborates with over 1,300 partners, creating new opportunities for manufacturers previously focused on automotive and machinery sectors.
'We’re unlocking a fresh aerospace market for supply chains,' said Liu Chang, co-founder of Galaxy Space, during an interview. The company recently attended a high-level symposium on private enterprises, underscoring the sector's growing influence.
While China's reusable rocket technology lags behind SpaceX’s achievements, progress is underway. LandSpace, a private firm, completed a milestone 10-kilometer vertical landing test in 2024—a critical step toward reducing satellite launch costs. Other companies aim for debut reusable rocket flights by 2025.
Liu also highlighted international opportunities, particularly in Belt and Road partner countries where telecom infrastructure gaps persist. 'Our satellite networks can leapfrog existing limitations, delivering affordable 6G-level connectivity,' she said, predicting costs could undercut current 5G services within a decade.
