China's LandSpace Prepares for Competition with Elon Musk and SpaceX

HUZHOU, Dec 29 (Reuters) - China's rocket startup LandSpace has openly acknowledged its inspiration from Elon Musk's SpaceX. Earlier this month, the Beijing-based company became the first Chinese entity to successfully test a reusable rocket, raising alerts at SpaceX. LandSpace is now taking steps to go public in order to finance its future initiatives, coinciding with its larger American competitor's contemplation of an initial public offering. Despite the recent setback with the Zhuque-3 rocket test, which did not achieve success, LandSpace's ambition to follow closely behind SpaceX in reusable rocket technology is revitalizing China's space sector, traditionally dominated by cautious state-owned enterprises. "SpaceX is able to push boundaries, learn from failures quickly, and iterate rapidly," said Dai Zheng, chief designer of Zhuque-3, in an interview with state broadcaster CCTV after the rocket's maiden flight. Dai's transition to LandSpace from the China Academy of Launch Vehicle Technology in 2016 was partly fueled by SpaceX's reusability goal and his vision of establishing a comparable Chinese venture. LandSpace aims to provide China with a cost-effective launch alternative similar to SpaceX's well-established Falcon 9, which will play a crucial role in Beijing's strategy with plans for 10,000 satellite constellations in the upcoming decades. "Falcon 9 is a well-engineered configuration that has been thoroughly tested," Dong Kai, deputy chief designer of Zhuque-3, mentioned in a recent podcast interview. "After our analysis, we appreciate its logic; we are learning, not just copying." He added that referring to Zhuque-3 as a 'Chinese Falcon 9' is a significant compliment. LandSpace's startup ethos and its emulation of SpaceX are catalyzing a fundamental change in China's space landscape. Historically, China's state-run space program has been hesitant to embrace launch failures, unlike Western counterparts that frequently communicate their setbacks. However, recent state media coverage has spotlighted China’s initial failed reusable rocket recovery attempts, including one from a state-owned enterprise, just weeks after Zhuque-3's inaugural launch. This month, LandSpace also welcomed foreign media to view its engine manufacturing facility, showcasing an essential component of its operations. Since the opening of its space sector to private investment in 2014, which has led to the emergence of several startups including LandSpace, Beijing is now facilitating efforts for prominent domestic companies to access capital markets and pursue IPOs. Dai noted that SpaceX's substantial financial support plays a vital role in enabling it to absorb significant losses while iterating on its Starship vehicle. "Currently, we can't afford to go through that process," Dai told CCTV, adding that he believes China acknowledges the need for capital markets to assist firms in commercial space endeavors. "IN A DIFFERENT LEAGUE" Just a month prior to LandSpace's launch of Zhuque-3, SpaceX founder Elon Musk recognized the vehicle's design. In a comment on a video showcasing Zhuque-3's assembly on X, Musk pointed out that the Chinese rocket incorporated elements from the Starship spacecraft while adopting a Falcon 9-like framework. "They have integrated aspects of Starship, like stainless steel and methalox, into a Falcon 9 design, which may enable them to surpass Falcon 9," Musk stated in October, remarking that Starship remains "in a different league." Incorporating features such as stainless steel coverings and engines fueled by methalox—comprised of methane and liquid oxygen—illustrates how companies like SpaceX and LandSpace are striving to significantly lower launch costs. However, the primary means of achieving cost-efficiency is the capability to launch a rocket and then return, recover, and reuse its first-stage engines. As LandSpace gears up for another rocket launch following the December failure—where the Zhuque-3's booster failed to execute a landing burn at the intended altitude—lessons from SpaceX’s journey may provide reassurance. SpaceX successfully landed its first Falcon booster in 2015 after experiencing two prior failures. (Reporting by Eduardo Baptista in Huzhou; Editing by Miyoung Kim and Thomas Derpinghaus)