CHINESE PRIVATE SPACE COMPANIES GET RECORD INVESTMENTS

In recent years, Chinese aerospace startups have attracted a huge amount of investment.

The launch of the CERES-1 Y2 commercial rocket last December marked an important milestone for Chinese private space companies. This is the second time rocket developer Galactic Energy - a Beijing-based aerospace company has put a satellite into orbit.

In recent years, Chinese aerospace startups have attracted a huge amount of investment.

Chinese private space companies get record investments

Chinese private space companies get record investments / ph: Galactic Energy

The consecutive successes are gradually making Galactic Energy the first company to commercialize rocket launches which shows the potential of China's commercial satellite launch missions in the future.

Driven by policies, capital and technology, China's commercial aerospace industry has enjoyed strong momentum over the past seven years and is estimated to become a multi-billion dollar market by 2025.

From January to September last year, 1,178 new satellites were launched into orbit - out of which in 2020 this number is 1,283. Among them, 835 satellites are owned by the US. China currently has 431 satellites in space (both commercial and state-owned), ranked the second place in a country's total satellite ownership.

However, with the growing number of satellite Internet building plans by SpaceX's Starlink, Amazon's Kuiper and OneWeb, and many others, the race for satellite networks is becoming more and more fierce.

After billionaire Elon Musk's SpaceX continuously launched a series of satellites into orbit, China submitted the application in September 2020 to build two low-orbit satellite clusters with a total of 12,922 satellites to compete. Last August, two experimental satellites of unified communication technology with the abbreviation RSW were put into orbit as the first step of this plan.

Established in April 2021, China Satellite Network Corporation is the main unit in charge. The company operates independently of China's two largest space agencies which pushes a huge incentive for private space companies.

However, limited launch sites and investment attraction are difficulties at present of the Chinese private space sector.

Galactic Energy is also promoting the research and development of a reusable heavy-duty aircraft carrier to conduct its first flight later this year or early 2023.

According to statistics, from 2015 to 2020, above 10 private rocket companies have been established all over China. In recent years, Chinese aerospace startups have attracted a huge amount of investment.

Last month, Space Pioneer announced it had received major strategic funding to realize its goal of launching a spacecraft into orbit this year.

Perhaps the most notable is the $200 million that Galactic Energy received in January. This investment eclipsed all previous record numbers in China. Galactic Energy said that it will use the investment amount for its upcoming rocket launches.

Meanwhile, Deep Blue Aerospace also received nearly 32 million USD in investment in mid-January. Another company newly established in 2020 is Orienspace also successfully raised capital with the amount of 47 million USD. Last month, reusable rocket engine maker Jiuzhou Yunjian received at least $15.7 million in new funding from various investors.

According to an industry expert, these are all good signs for private space companies particularly and the Chinese space industry generally.