Analysis of the Impact of China's Commercial Aerospace Policy Evolution on Investment Opportunities

During this period, China’s commercial aerospace policy was mainly cautious and tentative. The aerospace field was basically monopolized by the state-owned system, and private capital participation was extremely low. Policy makers sought a balance between the two core goals of “development” and “security”, setting high entry barriers for private aerospace enterprises.

has milestone significance. In November 2014, the “Guiding Opinions on Innovating Investment and Financing Mechanisms in Key Areas to Encourage Social Investment” first proposed encouraging private capital to participate in the construction of national civil space infrastructure, marking a substantive relaxation of aerospace entry barriers.

In 2015, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly released the “Medium- and Long-Term Development Plan for National Civil Space Infrastructure (2015-2025)”, providing a policy framework for the development of commercial aerospace. This policy breakthrough laid the foundation for the subsequent development of private aerospace enterprises.

During this stage, the policy focus shifted to standardized development, strengthening supervision and guidance of commercial aerospace enterprises to ensure the healthy and orderly development of the industry. Policies began to shift from simple entry relaxation to full industrial chain support.

In 2023, commercial aerospace was officially included in the national strategic emerging industries. The “2024 State Council Government Work Report” clearly stated that “we will accelerate the development of new-quality productive forces, actively cultivate emerging industries and future industries, and actively build new growth engines such as biomanufacturing, commercial aerospace, and low-altitude economy”, marking that commercial aerospace has entered a stage of rapid development at the national strategic level.

According to CCTV News, the market size of China’s commercial aerospace is expected to exceed 2.3 trillion yuan. According to Tiberius Think Tank’s forecast, China’s commercial aerospace industry will enter a golden period of development from 2023 to 2028.

The number of enterprises has shown explosive growth: in 2022, the number of new enterprises in China’s commercial aerospace field was 87,844, and in 2023, it reached 113,272, showing a strong growth momentum.

• Technology breakthrough opportunities
  : Reusable rocket technology, low-cost manufacturing processes
• Representative enterprises
  : LandSpace, i-Space, CAS Space, OneSpace
• Investment highlights
  : From “first flight verification” to “mass production commercialization”, technological maturity continues to improve

• Large-scale production
  : Satellite manufacturing has shifted from “single customization” to “platform-based batch production”
• Technological innovation
  : GalaxySpace’s Lingxi series satellites use modular platforms and have batch production capabilities
• Cost advantage
  : Unit satellite cost has been significantly reduced, and deployment efficiency has been significantly improved

• Application scenario expansion
  : Extending from traditional remote sensing services to new fields such as satellite Internet and IoT
• Commercial breakthrough
  : Satellite communication has become a key guarantee for education, medical care, and transportation services in remote areas

• National-level fund layout: China Internet Investment Fund began investing in commercial satellite enterprises as early as 2021
• Active participation of venture capital institutions: InnoStar Capital has been investing in commercial aerospace since 2015, and has laid out representative enterprises such as Chang Guang Satellite and Micro-Nano Star
• Accelerated listing process: Multiple commercial satellite enterprises such as Micro-Nano Star and Jiangsu Yixin Aerospace have started listing counseling work

A new pattern of competition and cooperation has been formed in Beijing, Shanghai, Hainan, Hubei, Guangdong and other places:

• Beijing has clearly set the goal of having more than 20 listed enterprises by 2028
• Shanghai plans to cultivate 5 Sci-Tech Innovation Board reserve enterprises
• Hainan Wenchang International Aerospace City attracts industrial agglomeration with tax incentives
• Hunan has established a 3 billion yuan aerospace industry fund

• Accelerated overseas expansion
  : Chang Guang Satellite has established a presence in Southeast Asia, Africa, and the Middle East markets for many years
• Diversified technology output
  : From technology output to overall solution output, including whole satellite exports, customized services, local investment and factory construction, etc.
• Beidou internationalization
  : Beidou technology has entered the relevant standards of more than ten international organizations

In key and difficult technologies such as on-board phased array antennas, on-board high-performance processing, and laser interconnection, domestic equipment has gradually moved from catching up to partial leadership.

• From “launching a single satellite” to “operating a network”
• Building an industrial chain closed loop covering manufacturing, launch, measurement and control, data services, and terminal applications
• Promoting the accelerated maturity of new business formats such as on-orbit services and satellite Internet

Commercial aerospace is moving from “copying SpaceX” to a Chinese-characteristic path of “scenario-driven + low-cost breakthrough”, forming a unique competitive advantage.

1. Large-scale development
   : From “first flight verification” to “mass production commercialization”
2. Technology integration
   : Deep integration with new technologies such as 5G, cloud computing, and artificial intelligence
3. International expansion
   : Expanding from domestic market to global market

1. Focus on technology innovative enterprises
   : Enterprises with breakthrough capabilities in core technology fields
2. Seize the policy dividend window period
   : Investment opportunities during the period of intensive policy introduction
3. Focus on full industrial chain layout
   : Shift from single link to comprehensive industrial chain layout
4. Attach importance to internationalization capabilities
   : Enterprises with overseas market expansion capabilities have greater growth potential

China’s commercial aerospace policy has evolved from tentative opening-up in 2007 to positioning as a strategic emerging industry in 2023, demonstrating the gradual and strategic vision of policy formulation. While seizing policy dividends, private aerospace enterprises need to achieve commercial breakthroughs through technological innovation, business model innovation, and international development.

Driven by policy, technology, and capital, China’s commercial aerospace industry is accelerating into a new stage of large-scale, systematic, and international development, providing rich opportunities for investors. The next 5-10 years will be a critical period for the development of the commercial aerospace industry and a golden window for investment layout.

[1] Securities Times - “From ‘Launching a Single Satellite’ to ‘Operating a Network’” (http://finance.people.com.cn/n1/2025/1208/c1004-40619481.html)

[2] Securities Times - “Aiming for the Stars and the Sea: Commercial Aerospace IPOs are in Full Swing” (https://stcn.com/article/detail/2474109.html)

[3] Sina Finance - “Aiming for the Stars and the Sea: Commercial Aerospace IPOs are in Full Swing” (https://finance.sina.com.cn/roll/2025-07-09/doc-infevnxv5055663.shtml)

[4] Kaiyuan Securities Research Report - “Satellite Internet Has Become a Trend; High Growth in Aerospace Measurement & Control and Simulation Demand Will Spawn New Stars”

[5] Yicai - “Multiple Departments Explain the ‘15th Five-Year’ Plan Proposals; State-Owned Assets Will Concentrate on Emerging Industries” (https://www.yicai.com/news/102880684.html)