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.
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.