China is pressing ahead with low-orbit satellite clusters as regulators lay out a framework to accelerate the technology\u2019s commercialization.\u00a0<\/p>\n
The biggest hurdle facing Beijing\u2019s ambitions remains the lack of reusable launch vehicles, a breakthrough that has enabled Elon Musk\u2019s SpaceX to cut costs and expand Starlink at speed.<\/p>\n
A new directive from the Ministry of Industry and Information Technology (MIIT) underscores<\/a> the government\u2019s push to transform satellite communications from research into a scalable consumer service.\u00a0<\/p>\n The guideline calls on telecom carriers to partner with satellite operators, co-build infrastructure and offer high-speed broadband for underserved areas on land, at sea and in the air. It prioritizes direct-to-device connectivity, envisioning mobile phones and other terminals linking seamlessly to satellites.<\/p>\n It also encourages commercial trials in satellite-based Internet of Things (IoT), with applications in shipping, aviation and disaster response.<\/p>\n \u201cChina will accelerate the construction and application of satellite internet systems to achieve high-quality development,\u201d the MIIT said. \u201cCommercial trials for low-orbit communications will be carried out at the right time to drive upstream and downstream innovation, to provide high-speed connectivity worldwide and expand diverse application scenarios.\u201d<\/p>\n \u201cPrivate enterprises are encouraged to lawfully use satellite resources through leasing, value-added services, and distribution partnerships,\u201d the guideline added. \u201cSuch cooperation will activate existing assets, broaden service offerings and help build a more vibrant satellite communications market.\u201d<\/p>\n The document also said China will integrate satellite communications with emerging technologies such as 5G, 6G and artificial intelligence (AI), accelerating advances in non-terrestrial networks.<\/p>\n China targets to have more than 10 million satellite communication users by 2030, placing the technology alongside fiber optics and 5G as strategic infrastructure.<\/p>\n Race for the skies<\/p>\n SpaceX has set the global benchmark in satellite broadband, rapidly building out the world\u2019s largest low-Earth orbit (LEO) constellation. The company expects to complete the deployment of roughly 42,000 satellites by mid-2027. As of Monday (September 1), it had launched 6,640 Starlink satellites, with 5,378 still operating in orbit after accounting for natural attrition.\u00a0<\/p>\n SpaceX\u2019s mastery of reusable rockets is driving this rapid expansion. In October 2024, the firm successfully used a pair of mechanical \u201cchopsticks\u201d on its launch tower to catch a returning Super Heavy booster, a milestone that dramatically cut launch costs. The company now routinely reuses Falcon 9 and Falcon Heavy vehicles, allowing it to launch dozens of Starlink batches each year with unmatched efficiency.<\/p>\n Yet low-Earth orbit can hold<\/a> only about 60,000 to 100,000 satellites, making capacity a scarce resource. The International Telecommunication Union (ITU) assigns orbital slots and frequency bands on a first-come, first-served basis, intensifying competition among nations.\u00a0<\/p>\n China\u2019s most ambitious project to date is the Qianfan, also known as Spacesail. It is operated by Shanghai Spacecom Satellite Technology (SSST) and manufactured by Shanghai Weixiao Satellite Engineering Center, a Chinese Academy of Sciences subsidiary. Qianfan targets regional coverage with 648 satellites by the end of 2025, global coverage with 1,296 in 2027 and a complete build-out of about 15,000 by 2030.\u00a0<\/p>\n Roughly 90 satellites have already been launched, and the operator is in talks with more than 30 countries to secure international partnerships.<\/p>\n The second main initiative is the GuoWang, or \u201cNational Networks\u201d project, led by Hebei-based state-owned China Satellite Network Group. GuoWang aims to launch 13,000 satellites to LEO, with a near-term target of 400 in orbit by 2027. As of mid-2025, the program had reportedly 72 operational satellites in orbit.<\/p>\n A third contender is Shanghai Lanjian Hongqing Technology, in which private rocket maker LandSpace holds a 48% stake. Its Honghu-3 plan envisions phased launches, starting with 1,296 satellites for regional coverage by 2027 before scaling to more than 15,000 by 2030. The company has not yet launched satellites into orbit.<\/p>\n Whether these projects can overcome the absence of reusable rockets remains the defining question as China seeks to close the gap with Starlink.<\/p>\n Some observers said Starlink\u2019s aggressive deployment has already secured it a dominant position in the low-Earth orbit satellite market. They said Starlink, which offers broadband services across over 100 countries, is expanding so quickly that it has become the world\u2019s default provider.<\/p>\n By contrast, Chinese firms have only secured partnerships in Brazil<\/a> in November 2024 and Malaysia<\/a> in February 2025. Beyond these limited agreements, their international footprint remains negligible.<\/p>\n According to Zhongjin Qixin International Consulting, the US holds a decisive first-mover advantage, with Starlink already operating thousands of satellites while Chinese systems are still in early phases.\u00a0<\/p>\n The consultancy firm said China faces the burden of high launch costs. It said, without mature rideshare capabilities or reliable rocket reusability, deploying thousands of satellites risks becoming prohibitively expensive.<\/p>\n Struggling with reusability<\/p>\n Slow progress on reusable rockets remains the biggest obstacle for China\u2019s rivalry with Starlink. Plans for a recoverable version of the Long March 8 have been delayed for what state media called \u201ccertain reasons.\u201d<\/p>\n For now, Beijing is leaning on the Long March 8A, which is non-reusable. On August 25, the rocket lifted<\/a> off from Hainan, its third flight, carrying satellites for the Guowang constellation.\u00a0<\/p>\n Built by the state-owned China Aerospace Science and Technology Corporation (CASC), the 8A features upgraded YF-75H hydrogen engines on its second stage and a wider 5.2-meter fairing to handle heavier payloads. Earlier missions also served Guowang, each delivering nine satellites to orbit.\u00a0<\/p>\n The 8A using YF-100 engines is emerging as a workhorse for China\u2019s satellite rollout. As every mission remains single-use, China lags far behind SpaceX regarding cost and efficiency.<\/p>\n Launching satellites aboard a Falcon 9 costs roughly $2,700 to $3,000 per kilogram. If flown frequently, SpaceX projects that its next-generation Starship could push costs down to as little as $13 to $32 per kg. Such a dramatic reduction would extend SpaceX\u2019s lead and raise the bar for would-be rivals.<\/p>\n Jiang Luye, chief technology officer at Xingsuo Technology, a maker of reusable liquid-fueled rockets, in an interview with Yicai.com described<\/a> the launch of China\u2019s low-orbit satellites as \u201cvery expensive.\u201d\u00a0<\/p>\n \u201cIn the aerospace supply chain, the launch is the most expensive procedure,\u201d he said. \u201cIn some cases, the launch cost is more than the manufacturing cost of the satellite.\u201d\u00a0<\/p>\n Jiang added that the only way to bring those costs down is through the adoption of more efficient engines and reusable launch vehicles.<\/p>\n