China moves to rival SpaceX: Stock market rules eased; reusable rockets in focus
China is accelerating its reusable rocket ambitions, offering a fast-track IPO route on its STAR market for companies developing this technology. New regulations waive traditional financial hurdles, focusing instead on achieving key milestones like successful orbital launches. This strategic move aims to challenge SpaceX's dominance in cost-effective space access and bolster China's own space capabilities.
China seems to be working hard to compete with Elon Musk’s SpaceX. The country is reportedly seeking ways to advance its reusable rocket capabilities through new regulations that would help its commercial space companies access public markets.
According to a Reuters report, the Shanghai Stock Exchange recently announced that Chinese companies developing reusable rockets will be able to access a fast lane for initial public offerings on the tech-heavy STAR market with exemptions from traditional financial requirements that typically barred unprofitable startups from listing. These new guidelines, which expand on rules introduced in June for pre-profit innovative companies, waive profitability and revenue requirements for rocket companies. Instead of meeting profitability and minimum revenue thresholds, these rocket companies will only need to demonstrate they've achieved key technological milestones, the Reuters report adds. This includes at least one successful orbital launch using reusable rocket technology. The move reflects Beijing's effort to close the gap with the US-based SpaceX, which currently dominates the capability to return, recover, and reuse rocket boosters after launch.
This technology has made SpaceX a cost-effective global launch provider.
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How China is working to break SpaceX’s monopoly on reusable rockets
Currently, SpaceX dominates the reusable rocket technology. The Elon Musk-owned rocket company’s Falcon 9 is the only reusable rocket regularly launched and used to put satellites into orbit.Earlier this month, Chinese private rocket firm LandSpace became the first domestic company to conduct a full reusable rocket test with the launch of its new Zhuque-3 model, signalling its intention to compete with SpaceX, Reuters noted.While the launch failed to complete the critical step of recovering the rocket's booster, multiple Chinese state-owned and private companies are now working to test launch their own reusable rockets.LandSpace reportedly plans to demonstrate successful rocket recovery in mid-2026, when Zhuque-3 will be launched for a second time. However, the company has noted that the capital-intensive nature of rocket development means it will need access to China's capital markets to compete with SpaceX.The Shanghai exchange's rules do not require that rocket companies successfully recover a rocket, only that reusable rocket technology be used to put a satellite into orbit. This is something LandSpace has already achieved with this month's launch.Chinese rocket companies undertaking national missions or participating in major state-led space projects will receive priority support, according to the new guidelines seen by Reuters. These new guidelines are set to take effect immediately, which highlights the close alignment between commercial launch activity and China's broader strategic objectives.China has repeatedly characterised SpaceX's position in low-Earth orbit as a national security risk and is actively developing its own satellite constellations, which it aims to expand to tens of thousands over the coming decades.