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

Sun Wenhe; Gao Ke; Chen Yuanyuan

doi:doi:10.11648/j.ss.20241302.12

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

Sun Wenhe^*, Gao Ke, Chen Yuanyuan

Published in Social Sciences (Volume 13, Issue 2)

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.

Published in	Social Sciences (Volume 13, Issue 2)
DOI	10.11648/j.ss.20241302.12
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.
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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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TY  - JOUR
T1  - Government Policy or Market Mechanism, Which Is Better for Chinese Private Rocket Enterprises
AU  - Sun Wenhe
AU  - Gao Ke
AU  - Chen Yuanyuan
Y1  - 2024/03/13
PY  - 2024
N1  - https://doi.org/10.11648/j.ss.20241302.12
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

Sun Wenhe

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

Contact Email
Gao Ke

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

Beijing DaDao Rongyuan Culture Development Company, Beijing, China

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Plain Text BibTeX RIS

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

Copy | Download

@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}
}

Copy | Download

TY  - JOUR
T1  - Government Policy or Market Mechanism, Which Is Better for Chinese Private Rocket Enterprises
AU  - Sun Wenhe
AU  - Gao Ke
AU  - Chen Yuanyuan
Y1  - 2024/03/13
PY  - 2024
N1  - https://doi.org/10.11648/j.ss.20241302.12
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  -

Copy | Download