China’s commercial aerospace sector is steadily transitioning from a phase of technical verification to large-scale deployment of satellites and spacecraft. Advancements in satellite mass production, in-orbit services and reusable rocket technologies are fueling this expansion. As satellite services integrate into consumer markets and various industries, China is also moving into in the competitive domain of low-earth orbit (LEO). This progress is reflected in recent industry figures. According to the China National Space Administration (CNSA), commercial space companies conducted 50 launches in 2025, accounting for 54% of the country’s total. Meanwhile, 311 commercial satellites were placed into orbit, representing 84% of the national total.
The newly-operational Hainan Commercial Space Launch Site facilitated nine of these missions, demonstrating a turnaround capability of “seven days for launch, and seven days for recovery” at its primary pad. China submitted filings to the International Telecommunication Union (ITU) in late December for up to 203,000 additional satellites. However, the practical execution of this strategy relies heavily on a maturing domestic supply chain. Key industry leaders note that the focus has shifted toward mass production and the urgent development of heavy-lift launch capabilities.
Lin Guangrong, System Architect at GalaxySpace, said his company has successfully transitioned from a “custom workshop” to a “digital factory”. Recognized as China’s first unicorn company in the commercial aerospace and satellite internet sector, GalaxySpace has established a complete manufacturing chain for satellites weighing 100 to 2,000 kilograms. The company’s annual production capacity for medium-sized satellites has stabilized between 100 and 150 units, with the manufacturing cycle shortened by 80% compared with traditional models. This efficiency is driven by a “smart brain”, where algorithms continuously optimize industrial processes based on data from front-line engineers. Industrialization extends to launch vehicles, with the aim of turning aerospace equipment into standard industrial products.
For example, the core stage and two boosters of the Lijian-2 Y1 carrier rocket, which recently had a successful launch, share an almost identical design. Lian Jie, Deputy Chief Designer of the Lijian-2, said this “universal booster core” configuration allows major components to be mass-produced. Making rockets is becoming akin to assembling building blocks; simplifying the manufacturing process and enabling rapid replacement of parts can support high-frequency, airline-style launch schedules, Lian said.
Chinese commercial space enterprises are also pushing the boundaries of in-orbit capabilities. A prime example is the Yuxing-3 06 satellite, recently launched from the Jiuquan Satellite Launch Center. It carried out a series of complex in-orbit operations hundreds of kilometers above the earth, including simulated propellant refueling using a robotic arm. Developed by Suzhou Sanyuan Aerospace Technology Co, a subsidiary of Beijing Aerospace Yuxing Technology, the satellite is intended to serve as a “space gas station”. Equipped with a flexible robotic arm, it is China’s first commercial experimental satellite designed to perform high-difficulty in-orbit operations. Cao Meng, Vice President of Beijing Aerospace Yuxing Technology, envisions a future where satellites swiftly locate targets, perform precise docking, and refuel them. “We hope to build the future ‘Space 4S shop’ to provide one-stop maintenance and repair for space assets,” Cao said.
Meanwhile, computing power is also heading to the stars. In a low-earth orbit approximately 500 km above the ground, 12 computing satellites are operating to form a space computing network. Spearheaded by the Zhijiang Lab, it aims to bring artificial intelligence (AI) directly to space. Wang Jian, Academician of the Chinese Academy of Engineering (CAE) and Director of the Zhijiang Lab, said nearly 90% of satellite data is currently discarded before reaching the ground due to limited onboard processing. By deploying AI models in orbit, the constellation can process data locally. The team has already successfully deployed 10 AI models in orbit. Technological innovation is also driving the efficiency of communication payloads.
Lin, from GalaxySpace, highlighted the development of payloads using the Q/V band, which combines the Q and V bands to cover frequencies from 47 to 52 gigahertz, more than doubling the bandwidth of current satellite systems. In September, the company also launched the world’s first satellite equipped with large flexible solar wings. These breakthroughs are being tested in the Little Spider Web, China’s first low-earth-orbit broadband trial constellation. Satellite communications are expanding into consumer fields like smartphones and smart vehicles, opening new consumer markets, the China Daily reports.
