Smart Dragon-3 and the Geopolitics of China's Space Strategy

Constellations of Power: Smart Dragon-3 and the Geopolitics of China’s Space Strategy
by Scott N. Romaniuk and Laszlo Csicsmann
Budapest, Hungary (SPX) Sep 17, 2025

On 9 September 2025, a Smart Dragon-3 rocket roared to life off the coast of Rizhao City, in eastern China’s Shandong Province, carrying 11 Geely-05 satellites into orbit. Conducted from a maritime platform by the Taiyuan Satellite Launch Centre, the mission marked the seventh successful flight of the Smart Dragon-3 and another step forward in China’s quest to fuse commercial innovation with national space ambitions. Behind the technical achievement lies a deeper story: the growing convergence of China’s private sector and state-led space strategy, and the ways in which satellite networks are set to redefine both the commercial and geopolitical landscape.
The Geely-05 satellites are part of an ambitious constellation developed by GeeSpace, a subsidiary of Geely Technology Group. Known globally for its automotive empire, Geely has in recent years extended its reach into aerospace, seeking to provide Internet of Things (IoT) connectivity on a global scale. By 2025, the first phase of the Geely constellation envisions a network of 72 satellites, creating a commercial platform capable of servicing industries from logistics and maritime operations to autonomous driving. This places Geely alongside a cohort of private-sector players, both domestic and international, who are betting that the future of connectivity lies above our heads.

Yet, unlike similar ventures in the West – such as SpaceX’s Starlink or Amazon’s Kuiper – the Geely constellation is more tightly integrated with China’s national strategy. Beijing has long sought to reduce dependence on foreign-controlled satellite services, particularly in areas where communications and navigation intersect with national security. By fostering private ventures like GeeSpace, the Chinese state effectively advances its “civil-military fusion” agenda, blurring the line between commercial technology and strategic infrastructure. The Geely-05 launch, therefore, is not just about selling IoT connectivity – it is about ensuring that China controls the space-based architecture that underpins its economic and military power.

The choice of launch vehicle underscores this point. The Smart Dragon-3, developed by the China Academy of Launch Vehicle Technology, is a four-stage solid-propellant rocket designed to place small to medium payloads into low Earth orbit (LEO) or sun-synchronous orbits (SSO). With the capacity to deliver 1.5 tonnes to a 500-kilometre SSO, the vehicle is optimised for precisely the kind of constellation deployment that China is now pursuing. Moreover, the decision to launch from sea, rather than land, demonstrates operational flexibility. Offshore launches reduce risk to populated areas, provide access to a wider range of trajectories, and enhance China’s ability to conduct rapid, mobile, and potentially deniable launch operations. This capability is particularly relevant in a strategic context, where resilience and flexibility in launch infrastructure can mitigate vulnerabilities in times of crisis.

Strategically, the expansion of China’s satellite constellations carries both regional and global implications. First, it reinforces Beijing’s determination to become a dominant player in the new space economy. Satellite-enabled IoT services promise to connect everything from shipping containers and aircraft to energy grids and remote sensors. Whoever controls the networks that enable this connectivity gains not only commercial advantage but also unparalleled access to data flows. In a digital age, this translates into both economic leverage and intelligence-gathering capacity.

Second, the constellation contributes to the growing bifurcation of the global digital order. Just as the world has witnessed parallel ecosystems in 5G telecommunications – Huawei versus Western vendors – satellite networks may similarly divide along geopolitical lines. A Chinese-controlled IoT constellation ensures that states and companies aligned with Beijing can operate within a secure and independent digital infrastructure, free from reliance on Western systems. For Washington and its allies, this development represents both a commercial challenge and a strategic headache, as Chinese platforms begin to rival and potentially undercut Western services in emerging markets.

Third, the dual-use nature of the technology cannot be overlooked. While marketed as commercial services, satellite constellations inevitably have military applications. Networks that track shipping containers can also monitor naval deployments. IoT services designed for autonomous vehicles can equally serve unmanned aerial or maritime systems. By deploying its own constellation, China ensures redundancy and resilience in its command, control, communications, and intelligence (C3I) systems. In an era of great-power rivalry, the ability to guarantee secure communications in space is as much about deterrence as it is about commerce.

Geely’s involvement in this domain highlights another dimension: the role of China’s private sector as a force multiplier for state power. The Chinese government has encouraged tech giants to diversify into strategic sectors such as aerospace and semiconductors, effectively aligning corporate ambition with national goals. For Geely, entering the satellite race not only diversifies its portfolio but also secures its position as a key partner in China’s technological rise. For Beijing, leveraging Geely’s resources and innovation allows the state to accelerate progress without bearing the full burden of investment.

The Geely constellation is just the beginning. China is rapidly expanding its presence in low Earth orbit, adding constellations for broadband internet, remote sensing, and navigation. This surge raises urgent questions: how will orbital congestion be managed? What rules will govern dual-use satellite networks? And how will other powers respond to China asserting dominance in yet another critical domain?

The September launch off Rizhao City is more than a technical feat – it’s a statement. China’s space strategy has entered a bold new phase, fusing commercial ambition with national power. Just as the AJX-002 XLUUV signals dominance beneath the waves, the Geely-05 constellation stakes a claim in the skies. The pattern is clear and relentless: autonomous systems, private-sector innovation, and state-driven strategy converging to rewrite the rules of the global geopolitical game.

The Smart Dragon-3’s seventh flight may have lasted only minutes, but its implications will reverberate for years. China is not merely launching satellites; it is launching a vision of a future in which its technological ecosystem extends from the depths of the ocean to the expanse of low Earth orbit. For its competitors, allies, and rivals alike, the message is clear: the age of Chinese space power is no longer on the horizon – it has arrived.

Scott N. Romaniuk: Research Fellow, Centre for Contemporary Asia Studies, Corvinus Institute for Advanced Studies (CIAS), Corvinus University of Budapest, Hungary

Laszlo Csicsmann: Full Professor and Head of the Centre for Contemporary Asia Studies, Corvinus Institute for Advanced Studies (CIAS), Corvinus University of Budapest, Hungary; Senior Research Fellow, Hungarian Institute of International Affairs (HIIA)

Smart Dragon-3 and the Geopolitics of China’s Space Strategy

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