One Space spots opportunity in rocket production, launch
Editor’s Note: The domestic commercial space industry has been growing fast since the Chinese government opened the sector to private firms in 2014. Rocket production and launch services are in the spotlight in the commercial sector, with more start-ups being established and investment pouring in. Global Times reporter Zhang Hongpei (GT) held an exclusive interview on Thursday with Shu Chang (Shu), CEO of Beijing-based start-up One Space Technology Co, a private rocket company, to discuss such spacerelated topics as market positioning, technology and trends.
Shu: I majored in aerospace technology in college and have experience of investing in the space sector, which provides me with a technological background and insights into the industry and market. When I saw the fledgling commercial space companies in the West, I wanted to invest in such a company in China. But there were almost no companies to invest in, so I decided to establish one. GT: Why did you decide to form a commercial rocket start-up? GT: Since China’s commercial aerospace industry is still at the nascent stage compared with that of the US, with SpaceX as an example, what are the main challenges?
Shu: The immature and complicated industrial chain, which poses problems for commercialization, needs to be tackled. For example, few people know how in-flight Wi-Fi is provided. It’s actually based on aerospace technologies – connecting the landbased internet with the airplane via a relay satellite, which is sent into space by a rocket.
In most cases, a launch services company does not know the demand of the downstream industry. Meanwhile, a satellite company might only know how to make one and have little knowledge of the whole industry chain including the post-launch operation.
For One Space, we are targeting a niche market – rocket manufacturing and launching as our first step – and I have faith in the segment.
GT: What is the business logic of commercial rocket companies? Can you share any information about orders that One Space has won?
Shu: Making inroads into a niche market and seeking to become a leader in it is good business logic. We are running at a small scale but a fast pace to realize the rapid upgrading of the product. For One Space’s OS-X rocket, most of its orders come from research institutes that want to test their spacecraft.
GT: What are the prospects of the domestic commercial space industry? Where is it headed? Shu: China has mature, rich experience in the space sector through decades of development, and commercializing it is the mission of companies like One Space. Bringing the internet into space via launch vehicles is set to create huge business opportunities.