Southern economic powerhouse province sets sights on space economy

GUANGZHOU - South China's economic powerhouse, Guangdong province, is attempting to capitalize on the thriving commercial space industry in a bid to fuel its high-quality development.

This week, the provincial government unveiled an action plan for the next four years, outlining various development measures in cutting-edge space technologies and pioneering sectors, such as high-thrust reusable rockets, sea-based launches and space tourism.

It aims to achieve a total scale of 300 billion yuan ($42 billion) in the commercial space industry by 2026 and strives for the capability of routine flights using reusable rockets by 2028.

The space economy was highlighted in the plan, which proposed advanced layouts for emerging fields -- including space manufacturing, space tourism and space biomedicine.

This is not the first provincial action plan of 2024 featuring the commercial space industry. Since China's government work report earlier this year highlighted the commercial space industry as a significant driver for new growth, many regions such as Beijing, Shanghai and Hunan have also rolled out measures to enhance regional development of this industry.

Beijing launched a "rocket street" project in July, aiming to establish a national-level scientific research and production hub for the advancement of commercial aerospace.

Shanghai released an action plan late last year, with a goal to produce 50 commercial rockets and 600 commercial satellites annually by 2025.

The coastal province of Shandong, an industrial base in East China, plans to have 300 key aerospace enterprises, approximately 10 industrial parks and more than five emerging industrial clusters by 2030.

Cross-regional cooperation was emphasized by Guangdong's plan, which not only mentions exchanges with leading cities like Beijing and Shanghai, but also encourages universities and research institutes in Guangdong, Hong Kong and Macao to work together towards breakthroughs in areas like remote sensing data and rocket engines.

China's commercial space market has experienced rapid growth since 2015, with an average annual increase of over 20 percent. The value of the country's commercial space market is expected to reach 2.34 trillion yuan in 2024.

Last year, Guangdong made history by becoming the first Chinese province to achieve a GDP surpassing 13 trillion yuan. At the forefront of China's reform and opening up, this southern economic giant has expanded its presence in the commercial space industry. Major cities within the province such as Guangzhou, Shenzhen and Zhuhai, are actively attracting and nurturing enterprises in the commercial space field.

Last month, a Lijian-1 rocket blasted off from Northwest China with five satellites onboard. It was the fourth launch to use the high-profile Chinese commercial rocket, which is manufactured by CAS Space, a Guangzhou-based company.

Its significant economic strength and abundant resources enable Guangzhou to provide the necessary financial support for commercial space enterprises. Last year, Nansha district in Guangzhou gained media attention by introducing measures offering bonuses of 1 million yuan and 500,000 yuan, respectively, for each successful rocket launch and satellite deployment.

"It is an important reason why we chose Guangzhou," Li Qinfeng, deputy general manager of CAS Space, said in a media interview, highlighting the financial support available in the South China metropolis.

The industrial foundation of Guangzhou is also strong, featuring advanced manufacturing, software development and electronic chip production. Li added that these strengths will be crucial for supporting the commercial space sector.