The Development of China’s Financial Sector as a Catalyst for Growing Space Industry

The relevance of the article’s topic is determined by the current trend of searching for ways to ensure the sustainable development of national space activities and methods of financing them. Along with them, we take into account the emergence of the private space industry and the accelerated overall pace of innovation processes in high-tech sectors of the economy. The objectives of this research work is to analyse the most significant transformation stages of financial sector of the People’s Republic of China and the impact of this process on the country’s achievements in space exploration within the period over the past several decades. The principal method used by the authors is qualitative content analysis, combined with a chronological approach to data systematisation. The scientific novelty lies in the combination of several aspects into a single causal field, namely, the development of Chinese financial system, the organisational structure of its space industry, its achievements, as well as the state support measures. The results of the study suggest that one of the key factors of success in space exploration of the People’s Republic of China could be the combination of market mechanisms with strong elements of a planned economy, which allows for the effective management of investment allocation in this strategic industry. The practical significance of the research work insofar, lies in potential application of its results to provide effective instruments for the financial support of high-tech industries, including the space exploration sector. The conclusions obtained may be beneficial for specialists involved in the planning activities and in the implementation of major national projects.

1. Wu J. A brief history of space science in China. Bulletin of the Chinese Academy of Sciences. 2024;38(4):2024012. DOI: 10.1051/bcas/2024012

2. Harvey B.China’s space program: From conception to manned spaceflight. London: Springer-Verlag; 2004. 350 p.

3. Kulacki G., Lewis J. A place for one’s mat: China’s space program, 1956–2003. Cambridge, MA: American Academy of Arts and Sciences; 2009. 48 p. URL: https://www.amacad.org/sites/default/files/publication/downloads/spaceChina. pdf

4. Khan Z., Khan A. Chinese capabilities as a global space power. Astropolitics. 2015;13(2–3):185–204. DOI: 10.1080/14777622.2015.1084168

5. Drozhashchikh E.China’s national space program and the “China dream”. Astropolitics. 2018;16(3):175–186. DOI: 10.1080/14777622.2018.1535207

6. Bitzinger R., Evron Y., Yang Z. China’s military-civil fusion strategy: Development, procurement, and secrecy. Asia Policy. 2021;16 (1):1–64. URL: https://www.nbr.org/wp-content/uploads/pdfs/publications/ap16–1_china_mcf_rt_ jan2021.pdf

7. Thompson D., Morris W.China in space: Civilian and military developments. Montgomery, AL: Air University Press; 2001. 34 p.

8. Erickson A.S., Walsh K.A. National security challenges and competition: Defense and space R&D in the Chinese strategic context. Technology in Society. 2008;30(3–4):349–361. DOI: 10.1016/j.techsoc.2008.04.001

9. Pollpeter K. Upward and onward: Technological innovation and organizational change in China’s space industry. Journal of Strategic Studies. 2011;34(3):405–423. DOI: 10.1080/01402390.2011.574983

10. Han Y., Chen Z., Hu Y., et al. A PIE analysis of China’s commercial space development. Humanities and Social Sciences Communications. 2023;10:744. DOI: 10.1057/s41599–023–02274-w

11. Yuan Y., Peeters W. Research viewpoint: Rapid growth of the Chinese commercial space sector. Astropolitics. 2019;17(3):191–207. DOI: 10.1080/14777622.2019.1675430

12. Zhang M., Yang X. China’s emerging commercial space industry: Current developments, legislative challenges, and regulatory solutions. Acta Astronautica. 2023;202:9–16. DOI: 10.1016/j.actaastro.2022.10.011

13. Ding Zhujun, Kovalev M.M., Novik V.V. Phenomenon of China’s economic development. Minsk: BSU Publishing Center; 2008. 446 p. (In Russ.).

14. Chebanenko E.N. The banking system of China in the context of globalization. In: Didenko N.I., ed. Proc. 17th Int. sci.-pract. conf. “Integration of the economy into the system of world economic relations (St. Petersburg, October 23–25, 2012). St. Petersburg: St. Petersburg State Polytechnical University; 2012:69–71. (In Russ.).

15. Li C., Zhang D., Hu D. Making breakthroughs in the turbulent decade: China’s space technology during the cultural revolution. Endeavour. 2017;41(3):102–115. DOI: 10.1016/j.endeavour.2017.06.007

16. Tutnova T.A. History of the PRC space program in the XX–XXI centuries. Istoriya i sovremennost’. 2014;(1):161– 181. (In Russ.).

17. Brünner C., Soucek A., eds. Outer space in society, politics and law. Vienna: Springer; 2011. 876 p. (Studies in Space Policy). DOI: 10.1007/978-3-7091-0664-8

18. Cheng D. China’s military role in space. Strategic Studies Quarterly. 2012;6(1):55–77.

19. Chebanenko E.N. Evolution in the process of attracting foreign capital in Chinese banking system. Problemy sovremennoi ekonomiki = Problems of Modern Economics. 2012;(1):331–334.

20. Xu Y. Towards a more accurate measure of foreign bank entry and its impact on domestic banking performance: The case of China. Journal of Banking and Finance. 2011;35(4):886–901. DOI: 10.1016/j.jbankfin.2010.10.011

21. Du X. Features and stages of formation of the stock market in China. Obshchestvo. Sreda. Razvitie = Society. Environment. Development. 2023;(3):15–20. (In Russ.). DOI: 10.53115/19975996_2023_03_015-020

22. White S., Gao J., Zhang W. Antecedents and institutionalization of China’s venture capital system. INSEAD Working Paper Series. URL: https://flora.insead.edu/fichiersti_wp/inseadwp2004/2004–52.pdf

23. Antonov I.I. The history of the development of the venture capital investment market in China. Journal of Monetary Economics and Management. 2023;(3):39–44. (In Russ.). DOI: 10.26118/2782–4586.2023.78.24.005

24. Glaz’ev S. Yu. Chinese economic miracle. Lessons for Russia and the world. Moscow: Ves’ Mir; 2023. 406 p. (In Russ.).

25. Lesnikova P.S. Space industry in China: Stages of development, current state, problems and prospects. Informatsiya i innovatsii = Information and Innovation. 2021;16(4):54–65. (In Russ.). DOI: 10.31432/1994-2443-2021-16-4-54-65

26. McCuaig-Johnston M., Zhang M. China embarks on major changes in science and technology. China Institute. University of Alberta. Occasional Paper Series. 2015;2(2):1–83. URL: https://www.ualberta.ca/en/china-institute/media-library/media-gallery/research/occasional-papers/stmccuaigjohnston-zhang201506.pdf

27. Kamennov P.B.Chinese space programme. Aziya i Afrika segodnya = Asia and Africa Today. 2012;(9):9–16. (In Russ.).

28. Epsteyn V.A., Bochkov D.A., Mukhametzyanov R.R. China’s space program: 60 years of evolution. Uchenye zapiski Kazanskogo universiteta. Seriya: Gumanitarnye nauki = Scientific notes of Kazan University. Series: Humanities. 2016;158(6):1575–1591.

29. Pollpeter K., Anderson E., Wilson J., Yang F. China dream, space dream: China’s progress in space technologies and implications for the United States. Washington, DC: U.S.-China Economic and Security Review Commission; 2015. 148 p. URL: https://www.uscc.gov/sites/default/files/Research/China%20Dream%20Space%20Dream_ Report.pdf

30. Liu I., Linck E., Lal B., Crane K., Han X., Colvin T. Evaluation of China’s commercial space sector. IDA Document D 10873. Alexandria, VA: Institute for Defense Analyses; 2019. 144 p.

31. Kim J.-Y. Strategic motivation of China’s space technology rise: From dependence to independence under Xi Jinping. International Area Studies Review. 2025;28(2):147–166. DOI: 10.69473/iasr.2025.28.2.147

32. Permyakov R.V. “New space”: Global landscape and commercialization models. Ekonomika kosmosa = Space Economics. 2023;2(4):12–28. (In Russ.). DOI: 10.48612/agat/space_economics/2023.02.06.02

33. Bingen K.A. 2024: The year that launched China’s commercial space sector? In: Cohen C., Kisling A., eds. Global forecast: A world dividing. Part I.Washington, DC: Center for Strategic & International Studies; 2024:19–22. URL: https://csis-website-prod.s3.amazonaws.com/s3fs-public/2024–01/240125_GlobalForecast_2024_ChinaChallenge.pdf