Wuhan, which gained maximum attention at the beginning of the Covid-19 pandemic, has pledged to build a 100-billion yuan ($15.7 billion) space industry by 2025 and become China’s “Valley of Satellites”, joining other towns charged with the sector’s development.
According to a notice from the Wuhan city government this week, it is providing enterprises up to 50 million yuan ($7.88 million) in cash incentives for projects connected to the manufacturing of satellites, rockets, and spacecraft. Such a financial push, however, indicates that China is intensifying its efforts to become a significant space power by 2030.
China wants enormous commercial satellite constellations that may provide services ranging from high-speed internet for aircraft to coal shipment tracking. According to reports, companies will be encouraged by the Wuhan municipal administration to adopt locally sourced equipment, software and services.
A company can receive financial incentives of up to 15 million yuan if it uses local items in more than 10 per cent of the production of high-orbiting and low-orbiting satellites, as well as spacecraft, while it would get up to 50 million yuan if local products account for more than 30 per cent.
Last year, the southern Guangdong province’s tech metropolis of Shenzhen provided up to 300 million yuan in incentives for any initiative related to satellite development and related industry uses. In the southern island province of Hainan, China is also planning a new commercial spaceport. China is building its fifth rocket launch station in the eastern port city of Ningbo in Zhejiang province.
However, it should be worth noting that in recent years, China has implemented a series of policies aimed at increasing government procurement of spacecraft, improving infrastructure construction, and strengthening military-civilian integration in order to support the development of the commercial aerospace industry through market-oriented means.
According to the China Astronautics Association for Quality, China’s commercial aerospace industry experienced exponential growth from 2015 to 2020, with the market size scaling up from 376.4 billion yuan ($59.09 billion) to 1.02 trillion yuan ($160.13 billion) at a compound growth rate of 22.04 per cent.
The estimate was based on numerous satellite constellation designs sketched out in 2020, which call for more than 3,000 commercial satellites weighing 400 tonnes to be launched during the next five years. By 2025, the market is estimated to exceed $210 billion, based on a single launch priced at $70 million by a Long March-3B.
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