Issue 107

China Space Supply Chain Analysis

30 Sep: In his most recent China Space Monitor newsletter, Blaine Curcio , takes a look at China's evolving space supply chain. Blaine highlights that for new technologies (like inter-satellite laser links) innovative new companies are plentiful, while for older technologies (such as rocket engines) state-owned…

30 Sep: In his most recent China Space Monitor newsletter, Blaine Curcio, takes a look at China’s evolving space supply chain. Blaine highlights that for new technologies (like inter-satellite laser links) innovative new companies are plentiful, while for older technologies (such as rocket engines) state-owned enterprises (SOEs) or their spin-off companies remain dominant with little competition. Excerpts below.

– Prior to 2014 almost everything was built by a large SOE (mostly CASC, and a few companies within CASIC, CETC, etc.) or specialty institutes of the Chinese Academy of Science (CAS).

– Within CASC are several “first-tier” subsidiaries…including the China Academy of Launch Vehicle Technology (CALT, aka 1st Academy), China Academy of Spaceflight Technology (CAST, aka 5th Academy), and the Shanghai Academy of Spaceflight Technology (SAST, aka 8th Academy).

– Typically the first-tier subsidiary builds the rockets and satellites, with second-tier making systems and subsystems, and third-tier making subsystems, materials, and components. (see graphic top right)

– For components or systems for which there is no established manufacturer…have, all else equal, seen a lot more investor interest, and in at least a few cases, a looming sense of overcapacity.

– For technologies…SOEs can already make, we have seen some commercial activity, but not an overwhelming amount. To take one example, rocket propulsion systems.

– The most successful commercial launch companies are buying rocket engines from CASC (solid rockets from 4th Academy, liquid from 6th).

-For technologies for which there was no well-established supplier…Private capital, and more recently provincial governments, have salivated at the prospect of all the lasers, hall effect thrusters that China’s large non-geostationary constellations will need.

– As recently as late 2019, there were almost no commercial companies in China developing laser communication terminals…Since early 2020, we have seen the establishment of HiStarlink, Laser Link, Laser Starcom, Shanghai Qionglong Science & Technology, alongside several CAS spinoffs.