Synopsis
The report “Evaluation of China’s Commercial Space Sector” provides an in-depth analysis of China’s emerging commercial space sector. The study addresses three main questions:
- What factors are driving the development of China’s emerging commercial space sector?
- What are the key characteristics of this sector?
- What are its strengths and weaknesses, and where do we expect Chinese commercial space companies to be in the next 5–10 years?
The report highlights that the Chinese government has provided political support and provincial governments have provided substantial financial support to the commercial space sector. This support allows many commercial space companies to draw on state-owned space supply chains and manufacturing capabilities. The companies benefit from China’s large, well-trained workforce, strong manufacturing sector, and an entrepreneurial culture that values hard work. The commercial space companies have focused on innovating on cost and leveraging second-mover advantage by watching and learning from companies in the United States.
However, the commercial space sector in China also faces several challenges, such as a lack of business acumen, competition with state-owned enterprises, restrictions on foreign collaboration and technologies, and increasing costs of labor and other workforce challenges.
In the next 5-10 years, a small number of Chinese commercial space companies could grow to a point where they have critical mass, especially if markets that benefit from the launch and use of small satellites grow rapidly. The future of these companies depends on Chinese government policies, growth in the global space sector, international willingness to trade with China, and developments in adjacent sectors.
