China’s LandSpace steps up to challenge Elon Musk’s SpaceX

China – US – China’s private rocket company LandSpace has openly acknowledged taking inspiration from Elon Musk’s SpaceX. Earlier this month, the Beijing-based startup made history by becoming the first Chinese firm to carry out a reusable rocket test. The move caught the attention of SpaceX, as LandSpace now plans to go public to raise funds for upcoming missions—mirroring discussions of a potential IPO by its far more established American competitor. Although the recent test flight of LandSpace’s Zhuque-3 rocket was unsuccessful, the company’s ambition to rank just behind SpaceX in reusable launch technology has injected new momentum into China’s space sector, traditionally led by cautious, state-owned players.

• China’s private rocket startup LandSpace openly draws inspiration from Elon Musk’s SpaceX and its reusable rocket strategy.

• The Beijing-based firm became the first Chinese company to test a reusable rocket, marking a major industry milestone.

• Although the Zhuque-3 rocket test failed, it sparked momentum across China’s traditionally state-led space sector.

• Chief designer Dai Zheng left a major state-owned rocket institute to pursue SpaceX-style innovation and reusability.

• LandSpace aims to build a low-cost launch system, similar to SpaceX’s Falcon 9, to support China’s future satellite constellations.

“SpaceX can push products to the edge and even into failure, quickly identifying limits and iterating,” Zhuque-3 chief designer Dai Zheng told state broadcaster CCTV after the rocket’s inaugural flight.

Dai said his decision in 2016 to join LandSpace and leave the China Academy of Launch Vehicle Technology, the country’s main state-owned rocket developer, was partly motivated by SpaceX’s focus on reusability and his desire to create a Chinese equivalent

LandSpace’s focus on giving China its own low-cost launch option similar to SpaceX’s flight-proven reusable rocket Falcon 9 will play a key role in Beijing’s plans to build up 10,000 satellite constellations in the coming decades.

“Falcon 9 is a successful configuration that has been tested by engineering,” Zhuque-3’s deputy chief designer Dong Kai said in a podcast interview last week. “After studying it, we recognize its rationality; this is learning, not imitation.”

China’s LandSpace gears up to take on Elon Musk and SpaceX https://t.co/WLWl164AW2

— The Straits Times (@straits_times) December 29, 2025

“Calling (Zhuque-3) a ‘Chinese Falcon 9,’ I think, is a very high compliment.”

Its startup culture and mimicking of SpaceX has already initiated a paradigm shift in China’s space industry.

China’s state-led space programme has historically been allergic to failed launches, in contrast to SpaceX and other Western firms that regularly broadcast their mishaps.

But earlier this month, state media covered China’s first two failed attempts at recovering a reusable rocket, with the second launch coming from a state-owned firm, just three weeks after Zhuque-3’s maiden flight.

LandSpace also opened its engine factory floor to Reuters this month, allowing foreign media to take a peek at one of its core assets for the first time.

After opening up the space sector to private money in 2014, which spawned several startups including LandSpace, Beijing is now looking to help leading domestic players tap into capital markets by making it easier for them to pursue IPOs.

Dai said SpaceX’s generous financial backing was a key factor in allowing the U.S. firm to incur huge losses while testing Starship, its reusable launch vehicle.

“For us, we’re not yet able to do that,” Dai told CCTV.

“I believe our country has recognised this, allowing capital markets to support companies (in areas) like commercial space flight.”

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A month before LandSpace launched the Zhuque-3, SpaceX founder Musk had already taken note of the vehicle’s design.

Commenting on a video on X that showed Zhuque-3’s assembly, he said the Chinese-made rocket had adopted aspects of the Starship spacecraft and applied them on a design similar to the Falcon 9.

“They have added aspects of Starship, such as use of stainless steel and methalox, to a Falcon 9 architecture, which would enable it to beat Falcon 9,” Musk said in October, in his first public comments about LandSpace.

Features like stainless steel sheaths and rocket engines powered by methalox, a combination of methane and liquid oxygen, are just some of the ways that companies like SpaceX and LandSpace are looking to reduce the enormous cost of launches.

But by far the most important cost-saver is the ability to launch a rocket, then return, recover and reuse its engine-packed first stage.

As LandSpace prepares another rocket launch after the December failure, when Zhuque-3’s booster was not able to activate a landing burn 3km from the ground as planned, causing it to crash rather than execute a controlled landing, it may take comfort from SpaceX’s experience.

SpaceX had its first successful Falcon booster landing in 2015 after two failed attempts.