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China is accelerating the construction of a “satellite town” on the outskirts of Beijing, a project described by state media as unprecedented and built around a coordinated master plan aimed at supporting the rapidly expanding commercial space industry.
State media said the complex’s central area is expected to be completed in the latter half of 2026. Once operational, it is expected to function as a “Silicon Valley” for the space sector, bringing together satellite manufacturers, operators, and aerospace technology companies within a shared ecosystem designed to pool infrastructure, optimize resources, and support innovation.
The project’s momentum is linked to the rapid rise of China’s commercial space sector. State media noted that more than 60% of domestic launches are currently carried out by private companies rather than government agencies, compared with earlier reliance on state-led efforts.
It also highlighted that many companies in the sector are preparing to list, reflecting growing capital inflows and market expectations.
Reuters cited Gao Yibin, head of strategic research at Future Aerospace, who said several factors have aligned to create an “explosion phase” for the industry. He pointed to streamlined launch licensing processes, maturing domestic supply chains as more components are produced domestically, and large-scale investment flowing into the sector.
Gao identified multiple technology areas underpinning growth:
The “satellite town” is designed as a strategic convergence point where talent, technology, and capital can flow together, enabling companies to collaborate, test, and scale. Consolidating the aerospace supply chain in one location is also intended to shift commercial space efforts from scattered activity toward a more organized ecosystem capable of competing globally.
Looking ahead, the plan aligns with forecasts that China’s space market could reach trillions of yuan in the coming years, with the city expected to both lay groundwork and help shape the industry’s future beyond 2026.
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