BEIJING, Aug. 17 (Xinhua) — As China pushes ahead with its high-quality development, new high-quality productive forces are coming into focus. One of the key players, the commercial space sector, is experiencing rapid growth and making a lasting impression on the world stage.

In December 2023, Beijing Interstellar Glory Space Technology, better known as iSPACE, conducted another successful test of its own reusable launch vehicle, marking a step toward a fully functional, domestically produced reusable rocket for China’s commercial space industry.

This private Chinese aerospace company aims to match the world’s most advanced rocket technologies. “There is still a long way to go. But we are catching up quickly,” Anna Choi, deputy manager of iSPACE, said in a recent interview with Xinhua.

In 2019, the Chinese startup successfully launched its SQX-1 Y1 rocket and placed two satellites into a 300 km high circular orbit. It was the first time that a private Chinese company succeeded in placing a satellite into orbit.

The Hyperbola-2Y was confirmed to be a reusable liquid oxygen and methane launch vehicle – the first of its kind in the country – during a test on December 10 last year. It is part of an iSPACE plan to launch a reusable medium-lift rocket into orbit by the end of 2025.

Since its founding in 2016, the company’s workforce has grown from fewer than 10 to over 400 employees.

Choi said both the company and the industry are experiencing rapid growth, driven by technological innovations and accelerated by supportive government policies.

iSPACE is one of several Chinese companies that have been active in the commercial aerospace industry in recent years. The country has seen an explosion of commercial space companies since 2014, fueled by the government’s opening of the sector to private capital.

According to media reports, the country’s private commercial space companies will achieve more than ten successful launches in 2023 alone.

Like iSPACE, most of these companies are headquartered in Beijing, attracted by the capital’s large talent pool and supportive policies.

In February 2024, Beijing announced plans to establish its own “Rocket Street” as a research and production center to further develop the commercial aerospace sector. Construction began last month in the Beijing Economic-Technological Development Area (BDA), located in a southeastern suburb of Beijing.

“Through the ‘Rocket Street’ program, we hope to leverage the cluster advantage to promote the development of the sector,” said a BDA representative.

The capital’s push to boost the commercial aerospace sector comes as the country strives to develop new high-quality productive forces to move the world’s second-largest economy up the global value chain. Commercial space development was listed as one of the key areas for development in this year’s Chinese government work report.

These priorities, which also include biomanufacturing, low-attitude economics, quantum technology and life sciences, are part of the country’s agenda to pursue sustainable growth through the development of strategically important and future-oriented industries.

In a sign of increasing government support, Choi said the city government has provided subsidies to the commercial aerospace industry to set up innovation centers focused on developing reusable rockets. The government is also committed to encouraging more private capital investment in the sector.

In addition to Beijing, numerous other regions and cities in China have announced plans to develop the commercial aerospace industry.

“This is a sector that requires pioneering courage. We are committed to innovation and confident about the recovery and the time beyond,” said Choi.