China Hopes To Find Its Own SpaceX, Pledges Financial Support To Space Startups

In an effort to rival the United States in outer space, China’s President Xi Jinping is replicating NASA’s strategy of supporting local startups, akin to the approach taken with Elon Musk’s SpaceX.

The China Manned Space Agency (CMSA) is considering financing private firms for future space missions. This announcement comes after the successful return of three astronauts from the Tiangong space station on Tuesday, Bloomberg reported. The agency is currently reviewing proposals to utilize privately developed rockets for cargo transport missions to the Chinese space station, as stated by Deputy Director Lin Xiqiang.

While the CMSA has not disclosed the potential size or value of contracts that could be awarded to private firms, this move mirrors the strategy employed by NASA with SpaceX. The latter company secured a $3.6 billion cargo-flight contract in 2008, just two years after its inaugural rocket launch.

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The decade since China introduced the space industry to private investment has seen some significant achievements. Most notably, Beijing Interstellar Glory Space Technology, also known as i-Space, launched the nation’s first privately-developed rocket into orbit in 2019.

However, the sector now finds itself at an inflection point, with fundraising slowing down. According to China Space Monitor, startups that raised an average of $1.2 billion annually between 2019 and 2022 are projected to generate roughly half that amount this year.

Contracts from CMSA could potentially bolster the Chinese industry, akin to the boost SpaceX received from NASA, as noted by Lynette Tan, CEO of Space Faculty Pte Ltd., a Singapore-based company that aids clients in training space-sector workforces.

Despite the challenges, some space startups already receive direct government support, including government grants and rent subsidies. Along with this, initiatives have been undertaken to raise their public profile, including brand collaborations and public exhibitions.

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