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.
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.