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 proposes 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 like commercial spaceflight and tackling frontier fields such as controlled nuclear fusion. It also emphasizes strengthening infrastructure like satellite internet.

“From emerging industries to emerging pillar industries, the importance of aerospace has increased, and the government’s positioning is more significant. Satellite internet is a key focus for the development of commercial space industry, and its mention alone highlights government 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 drives the overall upgrade and transformation of the space industry, becoming an important technological tool 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 is becoming a nationally prioritized industry. Commercial space is a rigid demand in China, mainly driven by security considerations. Currently, successful cases of global satellite internet exist, and satellite internet could break regional communication network restrictions, even influencing regional stability. Therefore, China aims to catch up fully around this field during 2026 and throughout the “14th Five-Year Plan.”

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, a 78% share. From 2015 to 2024, the global commercial space market experienced a compound annual growth rate of 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, which mainly focuses on national security and scientific research, commercial space operates through market mechanisms. Its industry chain includes upstream raw materials and component manufacturing, midstream rocket development and launches, satellite manufacturing and control, and downstream satellite engineering, operation, and satellite data applications 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 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 across industries, driving technological iteration in communications, remote sensing, navigation, and more.

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 expanded the internet industry. Combining rapidly advancing space computing power and AI services, satellite internet offers limitless possibilities for society—upgrading traditional industries like geographic information, smart cities, disaster response, and 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-reduction and efficiency-enhancement 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 phase from “technology validation” to “large-scale deployment.” For example, in rocket development and launch segments, industry players are advancing R&D and capacity realization.

Tianbing Technology told First Financial that it has built the country’s first private liquid oxygen kerosene rocket dedicated launch site in Jiuquan and is planning a general-purpose launch site at Hainan Commercial Spaceport. They aim to create a “Jiuquan dedicated + Hainan general” launch site pattern. Relevant leaders expect China to develop a market-oriented launch scheduling and utilization mechanism, optimizing nationwide launch site resources and improving overall launch efficiency. Technologically, Tianbing’s Tianlong-3 heavy-lift reusable liquid 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 constellation networks.

China Aerospace Science and Industry Corporation (CASIC) reported that over the past five years, their R&D investment grew 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, aiming for 13 missions this year, with an additional 1-2 on top. Among these, at least 8 launches will involve the Lijian-1 rocket, including two at sea; the Lijian-2 is scheduled for its first flight in late March, supporting satellite internet networking and some national missions, with four related launches planned this year. Additionally, the reentry verification of the Lihong-2 vehicle at 100 km altitude will proceed steadily.

Guotou Securities’ report indicates 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 plans, such as Qianfan+GW, involve about 30,000 satellites with over 250,000 applications planned. As China’s reusable rocket industry matures, satellite launch numbers are expected to increase.

Northeast Securities reports 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. Product and service sectors account for about 63%, including core services like satellite TV and navigation. As the industry continues to develop, applications in satellite services, manufacturing, ground equipment, commercial launches, and space computing hold significant potential.

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

Tianbing Technology’s relevant leader told First Financial that capital support aligns with the high investment, high risk, and long cycle nature 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 system development, 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 commercial space plans. 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 provincial high-quality development action plan for commercial space in April 2025. The plan includes building commercial launch sites and establishing a spatial layout led by “dual cores” (Chengdu metropolitan area and Liangshan) and multiple cities (Mianyang, Yibin, Luzhou, Nanchong, Ziyang, Suining, Neijiang), forming a multi-entity integrated commercial space industry system.

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

CASIC’s leadership told First Financial that since establishing a presence in Guangzhou in 2020, the company has grown from a small startup to nearly a thousand employees, building rocket industrial bases and testing centers. They have completed 11 launches, successfully deploying 84 satellites and 11 tons of payloads for clients in France, Egypt, UAE, Pakistan, and others. This year, they plan to build a rocket engine manufacturing base in Huangpu District, Guangzhou, with an annual capacity of 300 engines, aiming to locate R&D, design, testing, and production in the Greater Bay Area.

Regions with existing launch sites, like Hainan, are also accelerating industry deployment. In April 2025, Hainan issued policies to speed up commercial space launch capacity, aiming to develop world-class launch facilities, build major infrastructure and innovation platforms, establish a commercial spaceflight operation and control system, and create platforms for rocket recovery and reusability. The goal is to achieve low-cost, high-frequency, safe, and sustainable commercial launches.

In January this year, Jiuquan City released the “Jiuquan City Commercial Space Industry Development Plan (2026–2035).” It proposes creating a “one port, two zones, multiple points” industrial pattern, developing seven major sectors including launch and testing, rocket manufacturing and testing, satellite manufacturing and testing, space data backup and application, space technology services, space logistics, and space tourism. It also emphasizes attracting investment, advancing projects, improving park infrastructure, supporting technological finance, and enhancing space branding.

Pan Helin noted that industry collaboration is a major trend in commercial space development. Regions should develop based on local industrial advantages and adapt accordingly. The key is profitability—ultimately, commercial space aims to generate profits. Future development will likely see more regions entering the field, with some focusing on refining specific segments to become integral parts of the industry chain, rather than all rushing into launch site construction.

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 networking and high-quality space data applications will be core directions and key highlights for China’s commercial space industry during 2026 and the “14th Five-Year Plan.”