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Ken Chu

China’s commercial space sector has entered a new frontier. In January, a private Chinese aerospace company unveiled the test capsule of what is set to become the country’s first commercially developed crewed spacecraft, with plans for crewed flights by 2028 and bookings already taken from private space tourists.
The project reflects a decisive shift in national policy, where commercial players are no longer peripheral participants but integral contributors to major space missions.
This development follows confirmation by the China Manned Space Agency that commercial competition will be introduced for future systems, including low-cost cargo transport to the Tiangong space station and crewed lunar vehicles. This marks a structural change in how China approaches space development, blending state ambition with market mechanisms to open up a broader industrial ecosystem.
Globally, this trajectory is well established. SpaceX’s Crew Dragon operates routine missions for Nasa, while reusable rockets have reduced launch costs and accelerated commercial activity in near-Earth orbit. According to a Space Foundation report released last July, in 2024, commercial activity accounted for nearly 80 per cent of the growth of the global space economy, which was valued at US$613 billion and continues to grow.
China’s rapid progress in this arena signals more than technological ambition. It reflects the country’s intention to compete in a global industry where early movers shape standards, capture value and lock in advantages that last for decades. For Hong Kong, this is a moment that demands attention and action. Space development is no longer a distant scientific endeavour. It is an emerging commercial sector whose financing, governance and talent needs align closely with Hong Kong’s core strengths.
Faced with Beijing’s national objective of becoming a space power, Hong Kong should not, and cannot, remain on the sidelines. Participation would not only serve national priorities but also chart a new pathway for industrial upgrading and long-term competitiveness, especially as traditional growth engines face increasing constraints.


Under “one country, two systems”, Hong Kong is uniquely positioned to act both as a superconnector between domestic and international markets and as a value creator in the commercial space economy.
An immediate contribution Hong Kong can make is financial support. Commercial space ventures are capital-intensive, high-risk and long-cycle by nature. From spacecraft development to launch services and downstream applications, significant investment is required long before commercial returns materialise.
Hong Kong’s deep capital markets, sophisticated investor base and experience in structuring complex financial products make it well suited to support such ventures. These capabilities are already being discussed by industry observers. Hong Kong’s established roles in aircraft leasing and providing financial services to the maritime industry are cases in point.
Equally important is Hong Kong’s legal and regulatory infrastructure. As commercial space activity expands, new legal questions will arise around liability, insurance, dispute resolution, data ownership and cross-border contracts. These issues become even more pressing as space tourism and privately operated spacecraft move closer to routine operation.

Hong Kong’s common law system, closely aligned with international practice, provides a credible foundation for exploring these frontiers. By developing legal and regulatory solutions that balance national interests with global norms, Hong Kong can help shape future rules for space commerce rather than merely adapting to them later.
Timing matters. Governance frameworks in emerging industries tend to crystallise early and endure. Jurisdictions that take part in setting rules enjoy lasting advantages, while late entrants are often confined to compliance roles. As the Chinese commercial space sector gathers momentum, Hong Kong’s ability to contribute meaningfully will depend on whether it engages now, as standards, practices and commercial conventions are still taking shape.
Beyond finance and law, Hong Kong is also well placed to serve as an international testing ground for space applications. As a highly digitalised city, it has a strong demand for satellite navigation, remote sensing and communications data in areas ranging from logistics and urban management to finance and climate monitoring. Collaboration between Hong Kong universities, local firms and mainland space institutions could accelerate the development of commercially viable applications with global relevance, particularly in data analytics and downstream services.
There is also a broader strategic context that cannot be ignored. As space infrastructure becomes part of everyday economic activity, from navigation systems to financial timing networks, the line between commercial and strategic assets will blur.

Hong Kong’s role is not to compete with national space agencies, but to provide trusted commercial frameworks that allow capital, insurance and professional services to flow with confidence. In an era of geopolitical uncertainty, this function as a neutral, credible commercial interface is itself a form of value.
Talent development remains the most critical foundation. China’s fourth round of astronaut selection included payload specialists from Hong Kong and Macau, with missions expected as early as 2026. This milestone offers Hong Kong’s youth a tangible connection to the nation’s space programme.
However, our nation’s space economy will not be built only by astronauts and rocket engineers. It will depend just as heavily on the professional capabilities that Hong Kong possesses. Strengthening partnerships between universities, research institutions and industry players will be key to cultivating this broader talent base, which includes lawyers and analysts.
The crux of the issue is whether Hong Kong can help shape China’s commercial space architecture from the outset or find itself adapting to standards set elsewhere. In an industry defined by long lead times and high barriers to entry, this distinction will matter for decades to come.


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China's space programme

As China opens up its space sector, Hong Kong should reach for the stars

Illustration: Craig Stephens

Joggers run past a satellite remote sensing receiving station at the Chinese University of Hong Kong Water Sports Centre in Sha Tin on September 10, 2024. Photo: Eugene Lee

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A Long March-7A carrier rocket, carrying the Shijian-29A and Shijian-29B satellites, blasts off from the Wenchang Space Launch Site in south China’s Hainan province on December 31, 2025. Photo: Xinhua

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With deep capital markets and globally aligned legal practices, the city can support a competitive Chinese space programme that shapes global standards


With deep capital markets and globally aligned legal practices, the city can support a competitive Chinese space programme that shapes global standards.


Space

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As China opens up its space sector, Hong Kong should reach for the stars

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}With deep capital markets and globally aligned legal practices, the city can support a competitive Chinese space programme that shapes global standards

With deep capital markets and globally aligned legal practices, the city can support a competitive Chinese space programme that shapes global standards