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Home » Insiders Warn China’s Commercial Space Sector Faces Challenges

Insiders Warn China’s Commercial Space Sector Faces Challenges

Rukhsar Rehman by Rukhsar Rehman
August 22, 2025
in News
Reading Time: 2 mins read
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Insiders Warn China’s Commercial Space Sector Faces Challenges
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Despite a recent surge in rocket launches, China’s commercial space industry continues to face significant hurdles in capacity and technological development, according to industry insiders. Over the past 25 days, nine rockets have been launched, accounting for more than 25% of all launches in the first half of the year. However, these recent activities have also highlighted persistent challenges within the sector.

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Last week, a startup experienced a launch failure with its Zhuque-2E Y3 carrier rocket during a mission, with the specific cause remaining undisclosed. The failure underscores ongoing technical issues that need addressing.

Cost remains a key concern. While satellite manufacturing costs have decreased due to technological maturity in China, the expense of launching satellites into orbit is often higher than the satellite itself. A senior executive from a satellite manufacturing firm noted that a typical launch costs approximately CNY150,000 (around USD20,900) per kilogram. This means that placing a 500-kilogram satellite into orbit could cost up to CNY75 million (roughly USD10.4 million).

The high costs are a significant barrier. Jiang Luye, CTO of a company developing reusable liquid-fueled rockets, commented, “It’s very expensive.” He explained that improving launch capacity—meaning more satellites per launch—could help reduce overall costs, a potential achievable through better engine performance and recyclability.

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Technical difficulties are also prominent with the prevalent rocket technology in China, which employs kerelox—a mix of kerosene and liquid oxygen. This combination tends to produce deposits that are difficult to clean, increasing maintenance and operational costs. In contrast, the American SpaceX’s Raptor engines use liquid oxygen and methane, which are more suitable for reuse.

Jiang added that his company is developing a new generation of rockets capable of lifting significantly heavier payloads. “The higher the single-trip carrying capacity, the lower the overall launch costs,” he stated, estimating that costs could be reduced by at least half.

The company has grown to about 60 employees, drawn from some of China’s top universities, and plans to expand to around 200 staff by the end of the year. Focus areas for research include rocket reuse and advanced engine technology.

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Rukhsar Rehman

Rukhsar Rehman

A University of California alumna with a background in mass communication, she now resides in Singapore and covers tech with a global perspective.

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