Aerospace promoted to an emerging pillar industry; the prospects for commercial spaceflight before the "15th Five-Year Plan" are promising.

What does it mean for aerospace to become an emerging pillar industry? What changes can satellite internet development bring?

This year’s government work report proposed building emerging pillar industries such as aerospace and accelerating the development of satellite internet. The “14th Five-Year Plan” explicitly mentions 109 major projects, including cultivating new industries and tracks like commercial spaceflight, tackling frontier fields such as controlled nuclear fusion, and strengthening infrastructure construction like satellite internet.

“From emerging industries to emerging pillar industries, the importance of aerospace has increased, and the government’s positioning is more significant. Among them, satellite internet is a key focus for the development of commercial space industry, and its separate mention highlights the government’s attention,” said Hao Xuetao, Chief Scientist of China Science Map Co., Ltd., and Deputy Director of the Innovation Research Institute, in an interview with First Financial. Hao noted that satellite internet has driven the overall upgrade and transformation of the space industry, becoming an important technological means affecting national security, and thus a focal point in international technological competition.

Pan Helin, member of the Information and Communication Economy Expert Committee of the Ministry of Industry and Information Technology, told First Financial that policy support for “upgrading” means commercial spaceflight has become a key industry for national development. Commercial space is a rigid demand in China, mainly driven by security considerations. Currently, successful cases of global satellite internet exist, and satellite internet may break regional communication network restrictions, even influencing regional stability. Therefore, China will fully catch up in this field during 2026 and throughout the “14th Five-Year Plan” period.

Why commercial spaceflight? Why satellite internet?

According to a research report by Guotou Securities, based on the 2025 “Space Report” by the U.S. Space Foundation, the global space economy reached $612 billion in 2024, with commercial space accounting for $480 billion, or 78%. From 2015 to 2024, the compound annual growth rate of the global commercial space market was 7.7%. The industry is at a critical stage of transitioning from top-level planning to large-scale, low-cost launch capabilities, with promising future development.

Unlike traditional aerospace focusing more on national security and scientific research, commercial space operates through market mechanisms. Its industry chain includes upstream raw materials and components manufacturing, midstream rocket development and launches, satellite manufacturing and control, and downstream satellite engineering, operation, and satellite services, as well as applications of space data across various fields.

Reducing rocket manufacturing costs, improving launch capabilities, and advancing constellation deployment are key tasks for aerospace development. In recent years, commercial space has developed rapidly. On one hand, industry hopes that private companies can effectively supplement the national team, helping expand launch capacity and optimize orbital spectrum resources. On the other hand, commercial space development promotes the application of space data in industries like communications, remote sensing, and navigation, driving technological iteration.

Hao Xuetao stated that “Space Computing Network,” as an important component and upgrade direction of satellite internet, will further amplify the satellite internet industry, similar to how cloud computing magnified the internet industry. Combining rapidly developing space computing power and AI services, satellite internet offers limitless possibilities for society—upgrading traditional industries like geographic information, smart cities, and disaster emergency response, as well as inspiring new industries such as low-altitude economy and autonomous driving.

Pan Helin believes that commercial spaceflight is a prerequisite for key infrastructure like satellite internet. The reason for promoting commercial space is that its business models can provide funding for space development and push participants to develop cost-reducing and efficiency-enhancing technologies, such as rocket recovery technology.

On-chain companies accelerate R&D and capacity deployment

In recent years, the commercial space industry has entered a new stage from “technology validation” to “large-scale deployment.” For example, in rocket development and launch segments, industry players are advancing R&D and capacity realization.

According to Tianbing Technology, the company has established the first private liquid oxygen kerosene rocket dedicated launch site in Jiuquan and is deploying a general-purpose launch site at Hainan Commercial Spaceport, forming a “Jiuquan dedicated + Hainan general” launch site pattern. Relevant leaders expect that China will develop a market-oriented launch scheduling and utilization mechanism in the future, coordinating national launch site resources to improve overall launch efficiency. Technologically, Tianbing’s Tianlong-3 large-capacity reusable liquid carrier rocket is preparing for its maiden flight, having completed full ground testing of “one rocket, 36 satellites,” moving from “leading indicators” to “engineering reliability and cost control,” providing deliverable launch capacity for large-scale constellation deployment.

China Aerospace Science and Industry Corporation (CASIC) reports that over the past five years, their R&D investment has grown at a compound rate of over 100%, tackling “bottleneck” technologies. The LiJian-1 carrier rocket has completed multiple launches. The company has submitted plans for 2026 launches, with 13 scheduled for the year and an aim to add 1-2 more. Among these, at least 8 launches will involve LiJian-1, including 2 at sea; LiJian-2 is planned for its first flight in late March, supporting satellite internet networking and some national missions, with four related launches scheduled this year. Additionally, the reentry verification of the LiHong-2 vehicle at 100 km altitude will proceed steadily.

Guotou Securities reports that in 2025, global space launches will be dominated by the US and China, with the US conducting 193 launches (59.75%) and China 92 (28.48%). Domestic constellation projects like Qianfan+GW plan to deploy about 30,000 satellites, with over 250,000 applications submitted. As China’s reusable rocket industry matures, satellite launch numbers are expected to increase.

Northeast Securities notes that, according to the U.S. Satellite Industry Association, about 37% of the commercial space market is infrastructure-related, mainly ground stations and equipment, with satellite manufacturing also holding a share. About 63% of the market involves products and services, including satellite TV and navigation. As the industry develops, applications like satellite services, manufacturing, ground equipment, commercial launches, and space computing have significant potential.

In recent years, the commercial space sector has seen a surge in interest. Government, policy capital, market-based financial investors, and strategic investors have formed a large investor landscape around this field. What will capital empowerment bring to commercial space? How will the industry develop in the future?

Tianbing’s relevant leader told First Financial that capital support aligns with the high investment, high risk, and long cycle characteristics of commercial space. It not only provides continuous funding to ease R&D, capacity building, and infrastructure costs but also guides industry resources toward leading enterprises with solid core technology and systemic capabilities. Under industry enthusiasm, commercial space companies must focus on core technological innovation, large-scale capacity, and launch systems, demonstrating tangible industrialization and commercial results to foster a positive, self-reinforcing ecosystem.

Regional advantages accelerate industry chain deployment

First Financial’s review shows that in recent years, various regions have accelerated their layout in commercial space. Regions with rapid progress either have a solid aerospace industry base, a developed private economy, advanced high-end equipment manufacturing, or competitive launch site resources.

For example, Sichuan Province, with a strong industrial foundation in this field, issued a high-quality development action plan for commercial space in April 2025. The plan emphasizes building commercial launch sites and creating a spatial layout led by “dual cores” (Chengdu metropolitan area and Liangshan Prefecture) with multi-city coordination (Mianyang, Yibin, Luzhou, Nanchong, Ziyang, Suining, Neijiang, etc.), forming a multi-entity integrated commercial space industry system.

Guangdong, with a developed private economy, focuses on cultivating key upstream enterprises. The “Guangdong Action Plan for High-Quality Development of Commercial Space (2024–2028)” aims to strengthen leading companies and specialized “little giants,” support top-tier enterprises, and attract influential industry chain upstream and downstream companies. It also leverages existing policies to support both national space teams and private industry leaders to develop in Guangdong.

CASIC’s relevant leader told First Financial that the company established a presence in Guangzhou in 2020, growing from a team of dozens to nearly a thousand employees, and has built rocket industrialization bases and testing centers. To date, they have conducted 11 launches, successfully sending 84 satellites and 11 tons of payloads into orbit, serving clients in France, Egypt, the UAE, Pakistan, and others. This year, they plan to build a rocket engine production base in Huangpu District, Guangzhou, with an annual capacity of 300 engines, aiming to locate R&D, design, testing, and mass production in the Greater Bay Area.

Regions with existing launch sites are also accelerating industry deployment. For instance, Hainan, home to Wenchang Space Launch Center and Hainan International Commercial Spaceport, announced in April 2025 plans to accelerate commercial space launch capacity building, aiming to match international top-tier commercial launch sites, develop major infrastructure and technological innovation platforms, establish a commercial tracking and control system, and create platforms for rocket recovery and reusability. The goal is to establish a mature, stable commercial launch mechanism with low costs, high frequency, safety, and sustainability.

In January this year, the “Jiuquan City Commercial Space Industry Development Plan (2026–2035)” was officially released. It proposes building a “one port, two zones, multiple points” industrial pattern, focusing on seven major industries including launch and testing, rocket manufacturing and testing, satellite manufacturing and testing, space data backup and application, space technology support, space logistics, and space tourism. It also emphasizes initiatives like attracting investment, project breakthroughs, park upgrades, comprehensive support, financial empowerment, and brand enhancement.

Pan Helin noted that industry collaboration is a major trend in commercial space development. Regions need to develop based on local industrial advantages and adapt to local conditions. Business is key—ultimately, commercial space aims to be profitable. The future of commercial space will likely see two trends: more regions developing commercial space industries, and some regions specializing in specific segments to become part of the industry chain, rather than everyone rushing to build launch sites.

From top-level policy support to regional advantage exploration and on-chain enterprise acceleration, the development of commercial space is forming a synergistic momentum. Lowering launch costs, increasing launch frequency, and accelerating constellation deployment and high-quality space data applications will be core directions and key highlights for China’s commercial space industry in 2026 and the “14th Five-Year Plan” period.