As provinces and cities across China race to establish commercial aerospace clusters, smaller urban centers are actively carving out their own competitive positions. In July of this year, Chizhou released its targeted policy package for the commercial spaceflight sector, and by early September, the locally-built "Zhinushen-1 Y1" rocket completed its maiden flight with all systems performing normally, successfully meeting its test objectives. That same month, Aerospace Yilong's "Rocket Supermarket" project in Chizhou was on track for delivery. After six years of exploration, Chizhou is now offering a replicable model for how smaller cities can enter the commercial spaceflight industry.

The commercial aerospace sector—especially critical areas like rocket manufacturing—demands substantial fixed-asset investments and sustained R&D funding, making it a particularly challenging arena for smaller cities when compared to other industries. Chizhou's initial strategy focused on seizing the industry's central link: rocket final assembly and propulsion testing. In September 2020, private rocket firm Xinghe Power officially established its annual production capacity of 24 "Zhinushen" liquid-propellant rockets in Chizhou's Wanjiang Jiangnan Emerging Industry Concentration Zone. Six years later, on September 1, 2026, at 10:00 a.m., the Zhinushen-1 Y1 lifted off from the Jiuquan Dongfeng Commercial Aerospace Innovation Test Zone, smoothly entering its intended orbit as programmed.

Notably, this "Made in Chizhou" rocket anchored its design around a frontier technology from the outset: reusability. This capability is widely seen as the key to reducing rocket manufacturing costs in the future, lowering launch service fees, and ultimately ensuring the delivery capacity needed for large-scale satellite constellation deployment. During a March visit to Xinghe Power's liquid-fuel launch vehicle R&D and manufacturing base in Chizhou, an engine process engineer explained to reporters that the facility handles production of control valves for both solid and liquid rockets, along with the orbital attitude control propulsion systems. In other words, all components of the entire liquid rocket are integrated and assembled at this base.

According to information gathered from Xinghe Power, the primary cost driver for the Zhinushen-1 Y1 launch vehicle is its engines, with each unit costing roughly RMB 5 to 6 million. With seven engines clustered in parallel plus the aft section, the combined cost amounts to approximately RMB 40 to 50 million. Adding the first-stage oxygen tank and kerosene tank brings the primary manufacturing cost of the rocket's first stage to around RMB 100 million—a significant share of the total vehicle cost. The same staff member indicated that if the first stage can be successfully recovered, the manual refurbishment costs become negligible relative to the overall rocket expense. Therefore, recovery validation for liquid rockets represents substantial cost-reduction potential.

Amid rapidly scaling production capacity, concepts like the "Rocket Supermarket" and "Satellite Supermarket" are gaining momentum. The "Rocket Supermarket" integrates parts, components, assemblies, full systems, testing, and launch into a fully unified process, adopting modular thinking to achieve low-cost design, production, and manufacturing. During the research visit to the Yilong Rocket project site in Chizhou, project leader Wen Zhongliang told reporters that the "Rocket Supermarket" concept was originally proposed by Aerospace Yilong founder Sui Guofa. In the past, rocket design and production typically followed a one-arrow-one-model approach with dedicated production lines and tooling. From a production efficiency standpoint, this approach no longer meets the demands of high-volume rocket manufacturing. The team visited many locations during site selection, and in their first round of discussions with Chizhou, they immediately sensed that local officials had a solid understanding of the rocket industry, particularly commercial rocket manufacturing, and that the infrastructure and policy conditions on offer were precisely what the company needed.

Wen Zhongliang highlighted the geological advantages of the selected plot: "In our view, this is the best land in the entire concentration zone. It was originally a rocky hill. When we were excavating the foundation, I stood nearby watching the excavator dig—after two meters, it hit solid rock, and the bucket was throwing sparks before reaching bedrock below." He noted that facilities built on such stable ground would be highly reliable, ensuring dependable operation for large equipment weighing hundreds or thousands of tons, with no precision drift expected for years. The plot also sits adjacent to a major transport artery and close to the city's planned port, offering favorable logistics conditions. The facility is designed to produce large rockets with a 5-meter diameter. In an unfueled state, the rocket's dry weight is light enough to allow overland transport.

Wen Zhongliang reported recently that the first phase of Aerospace Yilong's "Rocket Supermarket" in Chizhou, encompassing over 50,000 square meters of plant space, is scheduled for completion and handover in September. Once fully operational, Phase I will produce 10 rockets annually. When all three phases reach full capacity, the goal of producing 100 rockets per year will transition from blueprint to reality. The acceleration of local commercial aerospace industry aggregation is evident, as industry insiders previously noted that satellite operators typically procure launch services while rocket companies supply lifting capacity. The private commercial rocket sector is currently in a phase of key technological breakthroughs and capacity ramp-up. Rocket assembly and manufacturing can drive upstream and downstream supply chain agglomeration, attracting satellite manufacturers and, in turn, prompting payload and materials companies to establish nearby operations.

During the March research visit, reporters observed a large panoramic map of the commercial aerospace supply chain covering nearly an entire wall in a conference room at the concentration zone's management committee. The map detailed every segment of the industry and its principal companies. Jiang Man, deputy director of the zone's Investment Promotion Bureau, explained that when engaging with companies across the supply chain, officials first determine where each enterprise fits in the overall industrial framework and assess how it might contribute to the local ecosystem's development. This approach allows them to better understand what kind of support companies actually need. Chizhou initiated its commercial aerospace industry development planning in 2024, created the supply chain map, and defined its "One Body, Two Wings, Three Bases" development strategy. On the investment front, the city has pioneered models such as "Fund + Industry" and "Chain Leader + Supporting Enterprises," targeting the key segments of "Rocket, Satellite, Network, and Ground Terminal."

The concentration zone focuses on three primary areas: rocket manufacturing, satellite payload manufacturing, and satellite data applications. In rocket manufacturing, Xinghe Power serves as the chain leader. In the satellite payload space, the city has attracted Xingyi Lianxin, whose Chizhou factory began operations in March. Over recent years, Xingyi Lianxin has developed four generations of satellite-borne base stations, two generations of satellite-borne routing systems, and China's first set of IoT NTN standard satellite IoT payloads. Its Chizhou Phase I plant can meet annual demand for 300 satellite communication payload units, with Phase II set to expand capacity further to serve the national satellite internet construction market. The Chizhou facility is expected to evolve into Xingyi Lianxin's batch production base for massive satellite internet constellations nationwide. As of August, the concentration zone had gathered 23 upstream and downstream commercial aerospace enterprises with total investment reaching RMB 19.26 billion, spanning rocket R&D and manufacturing, satellite payloads, aerospace new materials, space data services, and aerospace education and tourism across the full supply chain.

In April 2026, the Anhui Provincial Government General Office issued the "Anhui Province Action Plan for Accelerating Commercial Aerospace Industry Development (2026–2028)," explicitly supporting Chizhou in establishing a regional shared rocket testing center and a national-level aerospace materials testing and validation platform. In July, Chizhou formally released its "Commercial Aerospace Industry Three-Year Action Plan (2026–2028)," targeting an industry-wide scale exceeding RMB 10 billion by 2028, with more than 40 core enterprises clustered in the city. During the "15th Five-Year Plan" period, the Jiangnan concentration zone will focus on five major directions: aerospace materials, satellite payloads, rocket manufacturing and launch, satellite data applications, and aerospace tourism.

Despite these ambitions, smaller cities face significant challenges within a competitive landscape. Analysis of various Chinese cities reveals two dominant models for commercial aerospace cluster formation. The first relies on heritage from the national space program, carrying established scientific and manufacturing foundations. The second, which applies to cities without traditional aerospace roots, involves building an ecosystem from scratch through targeted investment attraction and policy support. For the latter, the availability of capital and policy backing serves as the critical leverage for attracting commercial aerospace enterprises. Industry sources note that different cities employ distinct approaches: some prefer early-stage, small-scale investments in startups, while others prioritize chain-leader enterprises with more certain growth prospects. Resource endowments also vary—some cities offer substantial funding with rapid decision-making, while others may lack large-scale capital but can secure favorable policy conditions for enterprises. In recent years, cities across the Yangtze River Delta, including Nanjing and Wuxi, have intensified their commercial aerospace efforts, making regional competition increasingly fierce. Chizhou, lacking both traditional aerospace industry heritage and advantages like launch sites or sea-launch port locations, also faces constraints on local fiscal capacity.

In response, Chizhou has adopted a dual approach: seeking support from higher levels of government while revitalizing local resources. The city is actively pursuing policy and resource allocation from both national and provincial governments, while simultaneously encouraging local enterprises with relevant foundational capabilities to transition into the commercial aerospace supply chain. The Action Plan calls for diversified funding sources, including establishing a deep-space exploration industry guidance fund, connecting with Yangtze River Delta regional funds and new-quality productivity investment platforms, actively applying for central budget investment and ultra-long-term special treasury bonds, and leveraging social capital for project investment and enterprise cultivation. To enhance industry influence, Chizhou will proactively align with Anhui Province's overall commercial aerospace layout and participate in establishing provincial-level industry alliances and technology innovation consortia.

Meanwhile, local enterprises with related capabilities are pivoting into the sector. One military-civilian integrated high-tech company specializing in wave-transparent composite materials noted that it faces competitive pressures and raw material price fluctuations in its existing operations. The company has been closely monitoring commercial aerospace developments and actively expanding its civilian business footprint. Future plans include advancing technology transfer, broadening application scenarios, extending supply chain reach both upstream and downstream, and constructing a complete industry ecosystem. For smaller cities, building a critical mass of industry clustering with collaborative capacity is no simple task, and Chizhou's ecosystem cultivation also contends with shortages of skilled technical and research talent. Under the Action Plan, Chizhou will compile a talent demand list for the commercial aerospace sector, focusing on final assembly and testing, rocket engine, payload and aerospace materials R&D, and data applications. The city will deepen school-enterprise cooperation with key aerospace universities such as Beihang University and Harbin Institute of Technology, establish internship, training, and entrepreneurship platforms, and systematically cultivate skilled and applied aerospace talent while recommending outstanding engineers for national selection programs.

The aforementioned high-tech enterprise representative shared that the company has established joint laboratories with research institutes, bringing in multiple experts for technical guidance. They have also formed cooperative relationships with universities, setting up a provincial-level postdoctoral research workstation to attract scientific talent into their R&D efforts. "Compared with larger cities that offer stronger research foundations and potentially better compensation, the attractiveness of a smaller city may lie precisely in the stage where technology is transformed and generates tangible returns," the representative observed.