Hainan province is intensifying efforts to build a comprehensive aerospace industrial cluster at Wenchang international aerospace city, focusing on satellite launches, satellite manufacturing and data chain development, with an ambitious goal to generate 10 billion yuan ($1.4 billion) in revenue from the facility by 2027.

The move is part of China's broader efforts to accelerate the development of satellite communications technology. The Ministry of Industry and Information Technology recently launched a guideline which outlines goals to achieve large-scale application of new models and formats such as direct smartphone-satellite connectivity by 2030, with satellite communication users exceeding 10 million.

Cao Shuyu, mayor of Wenchang, said the city will accelerate the development of a full commercial aerospace chain. Major projects, including a space-themed park, are being planned to position Wenchang as the "Capital of Aerospace Tourism".

As of Wednesday, the satellite super factory, a key supporting project of the aerospace city, was nearing completion. Construction has reached 90 percent of its planned progress and is expected to be delivered by the end of October. Once operational, the facility will provide significant momentum for Hainan's space sector and national space internet infrastructure development, experts said.

At the construction site, the main structure of the factory is already visible. Machinery and engineering vehicles are operating efficiently, with workers diligently advancing the project according to schedule.

In August, the Hainan provincial government issued a three-year plan (2025-27) to develop a modern industrial system with local characteristics and advantages. The plan highlights aerospace as a key sector, outlining measures to foster a full commercial aerospace industry chain and establish Wenchang as a major scientific innovation base for aerospace.

To enhance launch capabilities, Hainan is upgrading its launch site for commercial aerospace and accelerating second-phase construction and supporting facilities. The second phase of the Hainan commercial aerospace launch site began construction in January of this year.

Minsheng Securities said Launch Pads 1 and 2 at the Wenchang launch site will have a combined annual launch capacity of 32 liquid-propellant rocket missions, marking a significant improvement over traditional launch facilities. The analysis also suggests that 2025 and 2026 will be critical years for the debut and validation of new-generation reusable rockets, both from private and State-owned enterprises, potentially marking a true turning point for commercial rocket development.

In satellite manufacturing, the action plan promotes the construction of satellite super factories such as the one in Wenchang. A survey by Orient Securities indicated that major private aerospace companies currently have an annual satellite production capacity of about 300 units, which is expected to expand to 500-600 units in the near future.

In August, the MIIT released a guideline on optimizing market access to promote the development of the satellite communications industry.

Liu Xingliang, a member of the Expert Committee for Information and Communication Economy, which is part of the MIIT, said that the guideline has two standout features — setting clear development targets and top-level design up to 2030, and allowing private enterprises to lease satellite resources to develop value-added services, thereby promoting market openness and innovation.