China’s LandSpace gears up to take on Elon Musk and SpaceX

Huzhou, December 29 (Reuters) – Chinese rocket startup Blue Arrow Aerospace has made no secret of drawing inspiration from Elon Musk’s SpaceX.

Earlier this month, the Beijing-based company became the first Chinese entity to conduct a test of a reusable rocket. That has alarmed SpaceX, which is now preparing to go public to fund its future projects, just as its larger and more successful U.S. rivals are considering initial public offerings.

Although the test of Blue Arrow Aerospace’s Zhuque 3 rocket ended in failure, its ambitions became second only to SpaceX in the field of reusable rockets, providing new impetus to China’s space industry, which has long been dominated by risk-averse state-owned entities.

“(SpaceX) is able to push products to the edge or even fail, quickly identify limits and iterate,” Suzaku-3 chief designer Dai Zheng told CCTV after the rocket’s first flight.

Dai said he decided to join Blue Arrow Aerospace in 2016 and leave China’s main state-owned rocket developer China Launch Vehicle Technology Institute, in part because of SpaceX’s focus on reusability and his desire to create a Chinese-equivalent rocket.

Blue Arrow Aerospace is committed to providing China with a low-cost launch option similar to SpaceX’s flight-proven reusable rocket Falcon 9, which will play a key role in Beijing’s plan to build a 10,000 satellite constellation over the next few decades.

“Falcon 9 is a successful engineering-proven configuration,” Dong Kai, deputy chief designer of Zhuque 3, said in a podcast interview last week. “After studying it, we realized its rationality. This is learning, not imitation.”

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“I think calling (Suzaku-3) the ‘Chinese Falcon 9’ is a very high compliment.”

Its entrepreneurial culture and imitation of SpaceX have triggered a paradigm shift in China’s aerospace industry.

China’s state-led space program has historically been sensitive to launch failures, and SpaceX and other Western companies regularly publicize their launch failures.

But earlier this month, state media reported on China’s first two failed attempts to recover reusable rockets, with the second launch conducted by a state-owned company just three weeks after the first flight of Zhuque 3.

Blue Arrow Aerospace also opened its engine factory floor to Reuters this month, giving foreign media a first look at one of its core assets.

In 2014, the aerospace sector opened up to private funding, spawning a number of start-up companies including Blue Arrow Aerospace. Following this, Beijing is now seeking to help the country’s leading companies access capital markets by making it easier for them to conduct initial public offerings (IPOs).

Day said SpaceX’s generous financial support was a key factor in the U.S. company’s huge losses while testing its reusable launch vehicle Starship.

“For us, we haven’t been able to do that yet,” Dai told CCTV.

“I believe our country has recognized this and allowed capital markets to support companies in areas such as commercial space flight.”

“In another league”

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A month before Blue Arrow launched Suzaku 3, SpaceX founder Musk had already noticed the design of the vehicle.

Commenting on a video on X showing the assembly of the Suzaku 3, he said the Chinese-made rocket took some aspects of the Starship spacecraft and applied them to a design similar to the Falcon 9.

“They added some of the features of Starship into the Falcon 9 architecture, like the use of stainless steel and methicillin, that will allow it to beat Falcon 9,” Musk said in his first public comments about Arrow spaceflight in October.

“But Starfleet is in another league.”

Features like stainless steel sheaths and rocket engines powered by methane, a mixture of methane and liquid oxygen, are just some of the ways companies like SpaceX and LandSpace are looking to reduce the hefty launch costs.

But by far the most significant cost savings is the ability to launch a rocket, then return, recover and reuse its engine-laden first stage.

Blue Arrow Aerospace may take solace from SpaceX’s experience as it prepares to launch another rocket after a failure in December when the Suzaku 3’s booster failed to initiate a landing burn 3 kilometers above the ground as planned, causing it to crash rather than perform a controlled landing.

After two failed attempts, SpaceX successfully landed its Falcon booster for the first time in 2015.

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(Reporting by Eduardo Baptista in Huzhou; Editing by Miyoung Kim and Thomas Derpinghaus)

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