China is pressing ahead with low-orbit satellite clusters as regulators lay out a framework to accelerate the technology’s commercialization.
The biggest hurdle facing Beijing’s ambitions remains the lack of reusable launch vehicles, a breakthrough that has enabled Elon Musk’s SpaceX to cut costs and expand Starlink at speed.
A new directive from the Ministry of Industry and Information Technology (MIIT) underscores the government’s push to transform satellite communications from research into a scalable consumer service.
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.
It also encourages commercial trials in satellite-based Internet of Things (IoT), with applications in shipping, aviation and disaster response.
“China will accelerate the construction and application of satellite internet systems to achieve high-quality development,” the MIIT said. “Commercial 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.”
“Private enterprises are encouraged to lawfully use satellite resources through leasing, value-added services, and distribution partnerships,” the guideline added. “Such cooperation will activate existing assets, broaden service offerings and help build a more vibrant satellite communications market.”
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.
China targets to have more than 10 million satellite communication users by 2030, placing the technology alongside fiber optics and 5G as strategic infrastructure.
Race for the skies
SpaceX has set the global benchmark in satellite broadband, rapidly building out the world’s 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.
SpaceX’s mastery of reusable rockets is driving this rapid expansion. In October 2024, the firm successfully used a pair of mechanical “chopsticks” 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.
Yet low-Earth orbit can hold 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.
China’s 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.
Roughly 90 satellites have already been launched, and the operator is in talks with more than 30 countries to secure international partnerships.
The second main initiative is the GuoWang, or “National Networks” 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.
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.
Whether these projects can overcome the absence of reusable rockets remains the defining question as China seeks to close the gap with Starlink.
Some observers said Starlink’s 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’s default provider.
By contrast, Chinese firms have only secured partnerships in Brazil in November 2024 and Malaysia in February 2025. Beyond these limited agreements, their international footprint remains negligible.
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.
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.
Struggling with reusability
Slow progress on reusable rockets remains the biggest obstacle for China’s rivalry with Starlink. Plans for a recoverable version of the Long March 8 have been delayed for what state media called “certain reasons.”
For now, Beijing is leaning on the Long March 8A, which is non-reusable. On August 25, the rocket lifted off from Hainan, its third flight, carrying satellites for the Guowang constellation.
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.
The 8A using YF-100 engines is emerging as a workhorse for China’s satellite rollout. As every mission remains single-use, China lags far behind SpaceX regarding cost and efficiency.
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’s lead and raise the bar for would-be rivals.
Jiang Luye, chief technology officer at Xingsuo Technology, a maker of reusable liquid-fueled rockets, in an interview with Yicai.com described the launch of China’s low-orbit satellites as “very expensive.”
“In the aerospace supply chain, the launch is the most expensive procedure,” he said. “In some cases, the launch cost is more than the manufacturing cost of the satellite.”
Jiang added that the only way to bring those costs down is through the adoption of more efficient engines and reusable launch vehicles.
Read: China vows to catch up with Elon Musk’s Starlink
