Social Sciences

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Government Policy or Market Mechanism, Which Is Better for Chinese Private Rocket Enterprises

Received: 22 November 2023    Accepted: 4 March 2024    Published: 13 March 2024
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Abstract

In 2015, Chinese Government issued the Notice on the National Civil Space Infrastructure Medium - and Long-Term Development Plan (2015-2025), announcing that it would support and guide social capitals to participate in the application and development of national civil space infrastructure construction. Later, Chinese private companies are allowed to apply for launch licenses, breaking the traditional model of allocating funds from the state budget and developing rockets only by the "national teams". Many Chinese private rocket companies were registered and established afterwards, and some of them have successfully launched rockets several times in recent years. At the same time, Chinese private rocket enterprises are also facing with many problems, including the low success rate of rockets, the risk of rocket debris falling, high space insurance rates, space junk, talent competition, and corporate survival, etc. In 2023, the Chinese Government issued Notice on Strengthening the License Management for Civil Space Launch Projects, which requires the third-party liability insurance policy and space debris mitigation plan for launch licenses application, meanwhile the last sub-stage of the launch vehicle should de-orbit according to the regulations after taking measures such as passivation, using government policy tools to regulate and guide the development of private rockets. In conclusion, in order to promote the healthy development of commercial launch service industry, the market mechanism should play a leading role, while appropriately regulation and adjustment from the government policy are also needed. In addition, this paper also suggested that the Chinese government should carry out overall planning for the division of labor and product models of state-owned and private rocket companies.

DOI 10.11648/j.ss.20241302.12
Published in Social Sciences (Volume 13, Issue 2, April 2024)
Page(s) 28-34
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Rocket, Private Enterprise, Government Policy, Market Mechanism

References
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[3] Hu Lanyue, Dedicated or Rideshare - The opportunities and choices of Commercial satellite launch service, China Space, 2023-04-28 (001), https://doi.org/10.28083/n.c.NkiNCHTB.2023.000112.
[4] Li Xiang, Theory of legislative perfection of China Space, Central China Normal University, 2022, https://doi.org/10.27159/d.cnki.Ghzsu.2022.000349.
[5] Hu Minwen, Private Space Enterprises began in earnest with the Policy encourage, The Securities Times, 2023-08-18 (A01), https://doi.org/10.38329/n.c.NkiNZJSB.2023.003345.
[6] Bai Yang, Chasing after SpaceX: The Rise of China's Private Space, 21st Century Business Herald, 2024-02-02 (012), https://doi.org/10.28723/n.cnki.NSJBD.2024.000473.
[7] Yang Wei, Accelerating the Development of China's Commercial Aerospace Industry Chain, Macroeconomic Management, 07(2023): 19-26. https://doi.org/10.19709/j.cnki.11-3199/f.2023.07.006
[8] Malinowska, Katarzyna, Space Insurance: Field of International Law, ISBN: 9789041167842.
[9] Yin Yuhai, Li Wei, Liu Feiqi, Li Yongfeng, Chen hufen, Research on some legal issues of space launch, China Democratic Legal. ISBN: 9787802194083.
[10] Yang Wanyu, Wang Shihan, Commercial Space Track Facing Rapid Development Window, China Securities Journal, 2024-01-15 (J07), https://doi.org/10.28162/n.cnki.NCZJB.2024.000255.
[11] Alessandra Vernile, The rise of private Actors in the Space Sector, Springer. ISBN: 9783319738017.
[12] Ju Xiaoping, Introduction to foreign commercial space development models, China Space. ISBN: 9787515916750.
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[15] He Wangjuan, Peng Yansong, Space Economy Growing Continuesly with Satellites being Launched intensive, the Securities Daily, 2023-08-04 (B02), https://doi.org/10.28096/n.cnki.NCJRB.2023.004149.
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  • APA Style

    Wenhe, S., Ke, G., Yuanyuan, C. (2024). Government Policy or Market Mechanism, Which Is Better for Chinese Private Rocket Enterprises. Social Sciences, 13(2), 28-34. https://doi.org/10.11648/j.ss.20241302.12

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    ACS Style

    Wenhe, S.; Ke, G.; Yuanyuan, C. Government Policy or Market Mechanism, Which Is Better for Chinese Private Rocket Enterprises. Soc. Sci. 2024, 13(2), 28-34. doi: 10.11648/j.ss.20241302.12

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    AMA Style

    Wenhe S, Ke G, Yuanyuan C. Government Policy or Market Mechanism, Which Is Better for Chinese Private Rocket Enterprises. Soc Sci. 2024;13(2):28-34. doi: 10.11648/j.ss.20241302.12

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  • @article{10.11648/j.ss.20241302.12,
      author = {Sun Wenhe and Gao Ke and Chen Yuanyuan},
      title = {Government Policy or Market Mechanism, Which Is Better for Chinese Private Rocket Enterprises},
      journal = {Social Sciences},
      volume = {13},
      number = {2},
      pages = {28-34},
      doi = {10.11648/j.ss.20241302.12},
      url = {https://doi.org/10.11648/j.ss.20241302.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ss.20241302.12},
      abstract = {In 2015, Chinese Government issued the Notice on the National Civil Space Infrastructure Medium - and Long-Term Development Plan (2015-2025), announcing that it would support and guide social capitals to participate in the application and development of national civil space infrastructure construction. Later, Chinese private companies are allowed to apply for launch licenses, breaking the traditional model of allocating funds from the state budget and developing rockets only by the "national teams". Many Chinese private rocket companies were registered and established afterwards, and some of them have successfully launched rockets several times in recent years. At the same time, Chinese private rocket enterprises are also facing with many problems, including the low success rate of rockets, the risk of rocket debris falling, high space insurance rates, space junk, talent competition, and corporate survival, etc. In 2023, the Chinese Government issued Notice on Strengthening the License Management for Civil Space Launch Projects, which requires the third-party liability insurance policy and space debris mitigation plan for launch licenses application, meanwhile the last sub-stage of the launch vehicle should de-orbit according to the regulations after taking measures such as passivation, using government policy tools to regulate and guide the development of private rockets. In conclusion, in order to promote the healthy development of commercial launch service industry, the market mechanism should play a leading role, while appropriately regulation and adjustment from the government policy are also needed. In addition, this paper also suggested that the Chinese government should carry out overall planning for the division of labor and product models of state-owned and private rocket companies.
    },
     year = {2024}
    }
    

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    AU  - Sun Wenhe
    AU  - Gao Ke
    AU  - Chen Yuanyuan
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    DO  - 10.11648/j.ss.20241302.12
    T2  - Social Sciences
    JF  - Social Sciences
    JO  - Social Sciences
    SP  - 28
    EP  - 34
    PB  - Science Publishing Group
    SN  - 2326-988X
    UR  - https://doi.org/10.11648/j.ss.20241302.12
    AB  - In 2015, Chinese Government issued the Notice on the National Civil Space Infrastructure Medium - and Long-Term Development Plan (2015-2025), announcing that it would support and guide social capitals to participate in the application and development of national civil space infrastructure construction. Later, Chinese private companies are allowed to apply for launch licenses, breaking the traditional model of allocating funds from the state budget and developing rockets only by the "national teams". Many Chinese private rocket companies were registered and established afterwards, and some of them have successfully launched rockets several times in recent years. At the same time, Chinese private rocket enterprises are also facing with many problems, including the low success rate of rockets, the risk of rocket debris falling, high space insurance rates, space junk, talent competition, and corporate survival, etc. In 2023, the Chinese Government issued Notice on Strengthening the License Management for Civil Space Launch Projects, which requires the third-party liability insurance policy and space debris mitigation plan for launch licenses application, meanwhile the last sub-stage of the launch vehicle should de-orbit according to the regulations after taking measures such as passivation, using government policy tools to regulate and guide the development of private rockets. In conclusion, in order to promote the healthy development of commercial launch service industry, the market mechanism should play a leading role, while appropriately regulation and adjustment from the government policy are also needed. In addition, this paper also suggested that the Chinese government should carry out overall planning for the division of labor and product models of state-owned and private rocket companies.
    
    VL  - 13
    IS  - 2
    ER  - 

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Author Information
  • School of Government, University of International Business and Economics, China Volant Industry Corporation, Beijing, China

  • Guanghua School of Management, Peking University, Beijing, China; Development Research Center, Shandong Provincial People’s Government, Jinan, China

  • Beijing DaDao Rongyuan Culture Development Company, Beijing, China

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