China Launches Joint Industrial Association to Boost Aerospace Information Industry

Private Capital and Entrepreneurship Key to Catalyzing Growth

In a bid to strengthen its position in the global space technology race and steer economic growth towards a tech-heavy path, China has announced the establishment of a joint industrial association to boost the aerospace information industry. The association, comprising companies, research agencies, and space associations, aims to develop the industrial chain encompassing satellites, data application services, artificial intelligence (AI), and deep learning. With the support of private capital and entrepreneurship, China seeks to tap into the immense potential of the industry and bridge the gap with the United States.

The Growing Importance of the Aerospace Information Industry

The aerospace information industry, listed as one of the eight frontier areas in China’s 14th five-year plan, plays a crucial role in infusing data captured in space with ground-based big data analytics. This integration enables a wide range of applications, including transport, energy, communications, and the military. As the industry gains prominence, the need for private capital and entrepreneurship becomes increasingly apparent.

China’s Push for Technological Advancement

China’s efforts to develop the aerospace information industry align with its broader strategy of technological advancement. The country aims to gain a stronger footing in the global space technology rivalry with the United States. As part of this push, an investment fund cluster of 100 billion yuan (US$14 billion) has been launched to support key infrastructure and industrial giants. This initiative demonstrates China’s commitment to fostering innovation and growth in the sector.

Nurturing Leading Private Firms

The newly established association has pledged to focus its resources on nurturing a group of leading private firms in the aerospace information industry. Additionally, the commercial loan limit for high-quality companies will be raised to 10 million yuan (US$1.4 million). These measures aim to provide the necessary support and financing opportunities for private companies to drive innovation and contribute to the industry’s growth.

Projections for Industry Growth

With over 400 companies registered as commercial space firms by the end of 2021, the scale of China’s aerospace information industry is expected to reach 44.69 billion yuan (US$6.3 billion) by 2025, up from 29.3 billion yuan in 2021. According to a report by China Fortune Securities, the aerospace information industry holds a 73% share of the global commercial space market, which reached approximately US$384 billion in 2022. These figures highlight the significant growth potential of the industry.

The Need for International Cooperation

Olivier Contant, the executive director of the International Academy of Astronautics, emphasized the importance of international cooperation in helping the aerospace information industry reach new heights. Greater collaboration can support start-ups, facilitate technology integration into the industrial ecosystem, and foster global advancements. The sharing of knowledge and resources is crucial for the industry’s continued growth and development.

Challenges and Concerns

While China has made rapid progress in the aerospace information sector, challenges and concerns remain. Pravin Pradeep, an industry analyst at Frost & Sullivan, highlights the uncertainty surrounding China’s ground stations and associated infrastructure. The country lacks an extensive network of highly capable debris tracking and global monitoring stations, which the United States possesses. Additionally, China’s space program tends to prioritize strategic purposes over commercial ventures, limiting opportunities for private companies to foster innovation and flexibility.


China’s establishment of a joint industrial association to boost the aerospace information industry marks a significant step towards strengthening its position in the global space technology race. With the support of private capital and entrepreneurship, the industry is poised for substantial growth. However, challenges such as financing limitations and escalating tech sanctions from the United States need to be addressed. By fostering entrepreneurship, encouraging international cooperation, and providing adequate support for the private sector, China can bridge the gap with the United States and propel the aerospace information industry to new heights.






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