Chinese pseudo-company gets major cash influx for its Starlink copycat constellation
The Chinese pseudo-company Genesat, which is making the satellites for the 14,000 Starlink-type satellite constellation being developed by the Chinese pseudo-company SpaceSail, has been awarded $137 million in cash from a variety of Chinese sources, most of which are government agencies focused on encouraging development by these pseudo-companies.
Superficially everything about these companies appears real. They compete for contracts and investment capital, and can only function if they make a profit. They also compete with other similar Chinese pseudo-companies. The reality however is that they only exist because the Chinese government wants them to. For example, Genesat was formed by a partnership of SpaceSail and the Chinese Academy of Sciences (which is entirely government-run). And SpaceSail was formed earlier with support of both the national and local Shanghai governments. For example, consider today’s story:
Shanghai Gesi Aerospace Technology, also known as Genesat, announced the more than 1 billion yuan (approximately $137 million) funding round Dec. 30. The main investors include China’s National Manufacturing Transformation and Upgrading Fund, China Development Bank Science and Technology Innovation, Guosheng Capital, SIMIC Capital and Shanghai FTZ Fund.
The first two backers are both government agencies created to funnel government cash to these pseudo-companies.
Overall this approach by the communist Chinese government has worked remarkably well. It has created an robust space industry within a competitive and innovative atmosphere. That industry only exists however as long as the present policies of the Chinese government exist. If there is a major change in leadership it all could vanish in a moment, as there are no property rights in China. A new government could do as Putin did in Russia, consolidate all these pseudo-companies into a central government-run agencies in order to more closely control them.
For the present however China’s pseudo-capitalist approach means it will be a major player in space in the coming years. That success might even lead to a positive change in government, throwing the communists out of power eventually. It is not only demonstrating the advantages of freedom and competition over a top-down command economy, it is developing a class of people doing it. They might eventually have enough wealth and power to take over the government and changes things for real.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
The Chinese pseudo-company Genesat, which is making the satellites for the 14,000 Starlink-type satellite constellation being developed by the Chinese pseudo-company SpaceSail, has been awarded $137 million in cash from a variety of Chinese sources, most of which are government agencies focused on encouraging development by these pseudo-companies.
Superficially everything about these companies appears real. They compete for contracts and investment capital, and can only function if they make a profit. They also compete with other similar Chinese pseudo-companies. The reality however is that they only exist because the Chinese government wants them to. For example, Genesat was formed by a partnership of SpaceSail and the Chinese Academy of Sciences (which is entirely government-run). And SpaceSail was formed earlier with support of both the national and local Shanghai governments. For example, consider today’s story:
Shanghai Gesi Aerospace Technology, also known as Genesat, announced the more than 1 billion yuan (approximately $137 million) funding round Dec. 30. The main investors include China’s National Manufacturing Transformation and Upgrading Fund, China Development Bank Science and Technology Innovation, Guosheng Capital, SIMIC Capital and Shanghai FTZ Fund.
The first two backers are both government agencies created to funnel government cash to these pseudo-companies.
Overall this approach by the communist Chinese government has worked remarkably well. It has created an robust space industry within a competitive and innovative atmosphere. That industry only exists however as long as the present policies of the Chinese government exist. If there is a major change in leadership it all could vanish in a moment, as there are no property rights in China. A new government could do as Putin did in Russia, consolidate all these pseudo-companies into a central government-run agencies in order to more closely control them.
For the present however China’s pseudo-capitalist approach means it will be a major player in space in the coming years. That success might even lead to a positive change in government, throwing the communists out of power eventually. It is not only demonstrating the advantages of freedom and competition over a top-down command economy, it is developing a class of people doing it. They might eventually have enough wealth and power to take over the government and changes things for real.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
The only problem I see is that any good space leaders get shoved to lowly government positions…meaning their political leaders are proved to be more competent–but it prevents a Korolev or Von Braun coming to the fore
This may be an attempt to prevent a Chinese version of LeMay and Rickover fiefdoms –but space needs a strong man, like Musk.
In the US, different administrations give NASA different missions to the point it just spun wheels.
Leadership turnover can cause problems.
I was thinking about this.
Could the Chinese system use a radio frequency very close to Star Links? Thus they could use their satellites transmission power to blank out any possible way for Musk to bring a free/open internet to China.
Its not like China wants to bring a free and open internet to the world. But they can see a way to block Musk and at the same time bring military grade communications to all of their troops around the world with just simple cell phones.
In a way all other nations do the very same thing if they have the cash. Just not to the extent China does. All nations finance education and research projects in all of our universities. The US even uses Darpa and other agencies to try to direct those projects they are very interested in.
Most nations do not try to hide their investments behind government owned and financed companies like China.
As China has shown before, with their imprisonment of successful entrepreneurs, they are fine with SOME success – just not TOO much.
China will use Musk; I have to hope that he is canny enough to evade any traps the Chinese may set, honey or not.