The Chinese economy and the rapid growth in the past 40 years, China’s achievement in space is one of them. In just 40 years, China has become one of the most successful space powers in the world, together with the United States and Russia, although it is true that China is lagging behind in terms of certain technical specs, there is no denying that she is laser focused right now on our space endeavours in 2019 low, try to perform 34 launches, followed by the United States 27 pressure 25, and Europe and India, both of which has six launches, if we just look at the numbers, 34 seems to be an important advantage, but upon closer examination, we realise how powerful SpaceX is in comparison, especially considering its reusability cost savings, the fact that it is a private company for audiences on this channel, currently necessary who need to explain to you the history of SpaceX. It was founded in 2002 with initial funding provided by Elon Musk’s PayPal money. SpaceX is winning
The story goes that Ilan musk almost lost everything at the height of the 2008 financial crisis with 100 million invested in SpaceX and another 70 million in Tesla, obviously, the story turned out positive for Elon Musk eventually, but no one was sure of that in 2008. In May, 2003, while Elon Musk was busy talking to the Russians on buying an ICBM to build Falcon prototypes.
The only way a Chinese astronaut was going through some of the most stringent tests and training to prepare for his first spacecraft. It was the first human spaceflight for China, and a tremendous source of pride for her people. This gave the Chinese space agency its human spaceflight capability and SpaceX was just born with a story that unravelled afterwards we’ll assume makes SpaceX, one of the most successful space companies in decades after the failed attempt at purchasing a Russian ICBM Elan Musk was furious. He’s not known to take no for an answer if he has to build a rocket from scratch, so be it. We all know the rest of the story. SpaceX then built and launched five Falcon one rockets, failing, the first three attempts, only to succeed, the last moment after receiving funding from NASA SpaceX invented the world’s only reusable rocket system with Falcon nine, which lower SpaceX launch cost of well below 40 million per launch eating, the Chinese Lamarck rockets. So what made this reversal possible.
The most important factor in my opinion is NASA Elon Musk is known to speak his heart and has been controversial on many occasions, but when it comes to NASA, he has nothing but admiration and compliments for the obvious reason that NASA is a great American agency that has done a lot of good in the past decades, but most importantly Elon Musk understands how unlikely SpaceX could survive, let alone thrive. Without NASA support, NASA is SpaceX core partner that could not be replaced the representative fundamental logic of the industry.
Huge risky funding commitments upfront benefits later. NASA’s 3 billion commitment to SpaceX is the foundation of its success, a win win situation for NASA and SpaceX. In fact, NASA made it a principle that will support smaller rocket companies with funding, so as to bring more dynamism and competition to an otherwise stagnant industry, Congress demanded most of NASA’s money to be uncovered interests, such as Boeing and ul a so created its own success with relatively small funding supporting SpaceX. Think about the achievement of the US space industry in the past 10 years. SpaceX is the innovative force spearheading the whole industry. This is in contrast with the Chinese government lab programmes, which are less competitive.
The second reason is the fact that SpaceX is a US company rocket building is a serious business that requires huge human capital and know how, if you get on Moscow to set up SpaceX in South Africa where he was born, or maybe even Canada. Will he have succeeded. I’m pretty sure the answer is no. Rocket companies like SpaceX need engineers from all engineering verticals. The US is the best platform for innovation, and for getting the best talent. On top of this, SpaceX also has access to many of the US technologies that do not exist in China.
Therefore, it is understandable that SpaceX grows faster, since rocket technology is highly restrictive and the US has the most advanced technology around the world Centrify is a good example. It was designed, built and launched in the 50s and 60s, yet it will take China until 2030 to build a rocket as powerful as Saturn five, that’s 70 to 80 years behind. And here’s the part that upsets us domestic companies can no longer build a rocket as powerful as Saturn five SpaceX for the starship possibly will be the next second five level rocket for the United States. And this brings me to my last point, the lack of demand.
Despite the glory that comes with space achievements launch business has a tiny market with little demand valuation for SpaceX right now is hovering at around $30 billion for companies like Apple has a valuation point $6 trillion. SpaceX performed over half of the United States domestic launch in 2018. That only made SpaceX less than $3 billion. The entire US launch market performed 27 launches in total is not hard to see that the space industry is tiny. Similar industry norms is relevant for China as well. This means a slow moving, non competitive industry, lack of demand also man that talented young Chinese are increasingly working for Huawei Tencent and by dance, the parent company of Tick tock, rather than devoting their lives to launch businesses, the lack of demand for more powerful rockets also meant that China’s space industry had to be led by the governance. This explains the much slower rate of progress. Think about it.