Pseudo-private rocket company in China raises $200 million from Chinese investors
The Chinese pseudo-private rocket company Galactic Energy has successfully raised $200 million from a number of Chinese investors, money that the company will use to develop a mid-size rocket with a reusable first stage.
Though the company is not directly funded by the Chinese government, it is not an independent private company, which is why I label it “pseudo.” Everything it does is closely supervised and approved by the communist government. Also, some of this investment money apparently came from “state-backed investment vehicles,” which in plain language are fronts used by the government to funnel funding to these companies while maintaining the false appearance the companies are entirely private.
The fake nature of this charade has apparently influenced the decisions of real investors:
Incomplete information on funding in China’s emerging commercial space sector suggested that overall investment was lagging just over halfway through 2021, concentrating in fewer players.
It appears that no one outside China is willing to put money behind these companies, and even within China there is hesitancy.
Nonetheless, by letting many such competing operations that can also make profits for investors, China is successfully encouraging some innovation. That Galactic Energy — as well as several others — are planning on building reusable rockets is evidence of that.
Readers!
In order to remain completely independent and honest in my writing, I accept no sponsorships from big space companies or any political organizations. Nor do I depend on ads.
Instead, I rely entirely on the generosity of readers to keep Behind the Black running. You can either make a one time donation for whatever amount you wish, or you sign up for a monthly subscription ranging from $2 to $15 through Paypal, or $3 to $50 through Patreon, or any amount through Zelle.
The best method to donate or subscribe is by using Zelle through your internet bank account, since it charges no fees to you or I. You will need to give my name and email address (found at the bottom of the "About" page). What you donate is what I get.
To use Patreon, go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
For PayPal click one of the following buttons:
If these electronic payment methods don't work for you, you can support Behind The Black directly by sending your donation by check, payable to Robert Zimmerman, to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
The Chinese pseudo-private rocket company Galactic Energy has successfully raised $200 million from a number of Chinese investors, money that the company will use to develop a mid-size rocket with a reusable first stage.
Though the company is not directly funded by the Chinese government, it is not an independent private company, which is why I label it “pseudo.” Everything it does is closely supervised and approved by the communist government. Also, some of this investment money apparently came from “state-backed investment vehicles,” which in plain language are fronts used by the government to funnel funding to these companies while maintaining the false appearance the companies are entirely private.
The fake nature of this charade has apparently influenced the decisions of real investors:
Incomplete information on funding in China’s emerging commercial space sector suggested that overall investment was lagging just over halfway through 2021, concentrating in fewer players.
It appears that no one outside China is willing to put money behind these companies, and even within China there is hesitancy.
Nonetheless, by letting many such competing operations that can also make profits for investors, China is successfully encouraging some innovation. That Galactic Energy — as well as several others — are planning on building reusable rockets is evidence of that.
In order to remain completely independent and honest in my writing, I accept no sponsorships from big space companies or any political organizations. Nor do I depend on ads.
Instead, I rely entirely on the generosity of readers to keep Behind the Black running. You can either make a one time donation for whatever amount you wish, or you sign up for a monthly subscription ranging from $2 to $15 through Paypal, or $3 to $50 through Patreon, or any amount through Zelle.
The best method to donate or subscribe is by using Zelle through your internet bank account, since it charges no fees to you or I. You will need to give my name and email address (found at the bottom of the "About" page). What you donate is what I get.
To use Patreon, go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
For PayPal click one of the following buttons:
If these electronic payment methods don't work for you, you can support Behind The Black directly by sending your donation by check, payable to Robert Zimmerman, to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
“Though the company is not directly funded by the Chinese government, it is not an independent private company, which is why I label it “pseudo.” Everything it does is closely supervised and approved by the communist government.”
Doesn’t NASA help to finance private firms through awarding contracts? The need for private US firms to get approval from many levels of local, state and federal in order to do business certainly exercises a good bit of control and expense to firms like SpaceX.
Gary H: Private companies in the U.S. are not owned or controlled by the government. They obviously have to obey regulations, but they own their rockets, and can sell their services to pretty much anyone but China (which a law forbids). They can also develop projects that the government doesn’t necessarily want or like.
The Chinese companies might have private owners and operators, but those individuals take their orders from the government, and wouldn’t dare do anything the government disagrees with. They also can be taken over entirely by the state at any time. Their ownership rights are really nil.
These differences are not trivial.
Isn’t it sad that when the government purchases goods or services many people conclude it is funding or subsidizing that company. When someone buys a Big Mac, did that person fund McDonalds? There once was a time when commerce was commerce, not investment or handout.
China set to get some gains from Biden’s acts of Treason against America