By Roger (Fuhua) Ni, Founding and Managing Partner, Zenith Law Firm and Head of SSPI-China Chapter
In the ever-expanding global space economy, China's commercial space sector is not only a significant player but also a dynamic and rapidly evolving field. The theme "The Space Business is Everywhere" is particularly relevant to China, where the commercial space and satellite industry is experiencing a transformative period marked by significant government support and technological advancements.
The Excitement of China's Space and Satellite Industry
The commercial space and satellite industry in China is currently at an exciting juncture. The 2025 government work report twice mentions "commercial space," highlighting its importance. The first mention is in the section reviewing the past year's work, where commercial space is cited as one of the rapidly developing emerging industries, alongside BeiDou applications and new energy storage. The second mention is in the 2025 government work tasks, where commercial space is identified as a key area for safe and healthy development, with an emphasis on large-scale application demonstrations of new technologies and products.
Looking back at 2024, commercial space was – for the first time – included in the government work report, signaling the beginning of a new era. The launch of China's version of "Starlink" and the imminent surge in commercial satellite launches marked significant milestones. Breakthroughs in rocket reusability and the operation of the first commercial space launch site laid the foundation for the industry's next phase. In 2024, China set a new record with 68 rocket launches, 12 of which were conducted by private companies, accounting for 18%. A total of 257 spacecraft were successfully placed into orbit, with commercial satellites making up 78.2% of the total.
Encouraging Private Capital and Policy Support
In 2014, the Chinese government began encouraging private capital to participate in the construction of national civilian space infrastructure. Subsequently, several key policy documents were released, including "Made in China 2025," the "Medium- and Long-Term Development Plan for National Civilian Space Infrastructure (2015–2025)," the "Notice on Implementing Major Engineering Packages for Manufacturing Upgrades," the "Guiding Opinions on Accelerating the Construction and Application of the 'Belt and Road' Space Information Corridor," the "Opinions on Promoting Deep Integration of Military and Civilian Development in the Defense Science and Technology Industry," the "National Comprehensive Three-Dimensional Transport Network Planning Outline," and the "14th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives Through the Year 2035." These policies collectively aimed to encourage private capital to enter the space sector. As a result, 2015 is often referred to as the inaugural year of China's commercial space industry. Since then, with the policy dividends, numerous private commercial rocket companies have been established, and the capital market's attention to commercial rockets has increased significantly, even leading to the concept of intelligent rockets linked with ChatGPT.
Foreign Investment Access
Despite the "Special Administrative Measures for Foreign Investment Access (Negative List) (2021 Edition)" only mentioning restrictions on foreign investment in water transport companies, public air transport companies, and the construction and operation of civil airports, the "Encouraged Foreign Investment Industries Catalogue (2022 Edition)" identifies several areas related to aerospace as encouraged for foreign investment. These include the design and/or manufacturing of "aerospace engines and parts, auxiliary power systems for aviation, new materials for aerospace, civil aviation onboard equipment, civil aviation ground equipment, ground testing equipment for launch vehicles, and mechanical and environmental testing equipment for launch vehicles." However, since launch vehicles are categorized under "weapons equipment" in the 2018 Edition of the "Catalogue of Weapons Equipment Research, Development, and Production Licensing," commercial rocket companies are still subject to foreign investment restrictions related to "weapons equipment" business qualifications in China.
Participation in the Global Space Economy
As the head of the SSPI-China Chapter, I am deeply involved in promoting the commercial space sector both locally and globally. Our organization is committed to fostering collaboration and innovation, driving the development of space-related technologies and applications. We are also working closely with international partners to explore new markets and opportunities, leveraging China's growing capabilities in space exploration and satellite technology.
Collaboration with China's Space Industry Cities
The SSPI-China Chapter is actively collaborating with several space industry cities in China to advance the development of commercial space. These collaborations aim to create robust ecosystems that support innovation, technology transfer, and commercialization. By working with local governments and industry clusters, we are fostering an environment that encourages private investment and technological advancement. These partnerships are crucial for accelerating the growth of the commercial space sector in China and ensuring that it remains competitive on a global scale.
View of Shanghai, one of China’s most important industrial cities
Credit: xiquinhosilva on Wikimedia Commons
Unique Challenges and Opportunities
Doing space business in China presents both unique challenges and opportunities. The regulatory environment is becoming more sophisticated, emphasizing the importance of compliance. As the global space economy grows, China is also moving towards greater internationalization, which means that companies need to navigate a complex landscape of regulations and standards. However, the opening up of the market to foreign investment offers unprecedented opportunities for those who are willing to invest early and adapt to the evolving regulatory framework.
Growing the Space Sector through Partnerships and Collaborations
To support the growth of the space sector in China, we are actively building partnerships and collaborations. This includes working with government agencies, academic institutions, and private companies to create a vibrant ecosystem that fosters innovation and development. We are also organizing various forms of commercial space seminars and forums to provide a platform for knowledge sharing and networking. These events are crucial for bringing together stakeholders from different sectors and promoting the exchange of ideas and best practices.
Looking Ahead: The Future of China's Space Industry
Looking ahead, the space industry in China is poised for significant growth. The 2025 government work report emphasizes the safe and healthy development of commercial space, marking the beginning of a new phase of scaled application. The industry is expected to undergo a transformation and upgrade, with the market size potentially exceeding 2.5 trillion yuan. International cooperation will continue to expand, offering more opportunities for collaboration and investment.
For those who are willing to invest early and adapt to the changing landscape, now is the best time to layout in the Chinese market. The window of opportunity is estimated to be around three to five years, during which the internationalization of China's commercial space sector will progress rapidly. Those who seize this moment will be at the forefront of a new era of space exploration and commercialization.
In conclusion, the space business is indeed everywhere, and China's commercial space sector is no exception. With the right strategies and a focus on compliance, companies can tap into the vast potential of this growing market and contribute to the global space economy. As we continue to push the boundaries of what is possible, the future looks bright for those who are ready to embrace the challenges and seize the opportunities.