China has achieved the first success in restoring the CZ-10B rocket using a net system, marking the beginning of the era of reusable rockets and a projected reduction in launch costs by 60–70%. This breakthrough signifies a paradigm shift in the space economy from single-use launches to the utilization of reusable assets in both governmental and commercial programs.
The first recoverable stage was successfully captured on July 10, 2026, aboard the vessel Navigator. The net capture system differs from the tower capture method used by SpaceX: after separation, the stage freely glides and synchronizes with the moving ship before being enveloped by a steel net.
The net capture method offers several advantages over the tower capture method. While SpaceX's Starship tower capture requires ground infrastructure with millimeter precision and zero error, the net capture system allows for a terminal error of up to 10 meters. This reduces the requirements for guidance accuracy and landing fuel reserves. Furthermore, the net system eliminates the need to install landing legs on the rocket, which reduces dry mass and increases payload capacity.
However, the tower capture method allows for shorter maintenance cycles because the rocket remains suspended on the tower for immediate inspection and repair. Elon Musk, founder of SpaceX, stated that Starship aims to achieve one launch per hour within three years using the tower capture approach.
China's reusable rocket program is not limited to the state project CZ-10B. Commercial space companies have either achieved or are approaching the recovery of the first stage. CAS Space Lijian-1 has conducted 15 missions, launching 110 satellites, and is developing reusable variants. Deep Blue Aerospace has successfully tested kilometer-scale vertical takeoff and landing using the same liquid oxygen and kerosene engines as the orbital vehicle. LandSpace and iSpace are working on methane and liquid oxygen reusable rockets, planning their first flight by 2028. Galaxy Energy and Orienspace Gravity-2 aim for the first launch of a reusable liquid rocket in the fourth quarter of 2026. Competition between state and commercial programs is accelerating the pace of reusable rocket development in China.
Reusable rockets open up possibilities for satellite constellations, space computing, in-space manufacturing, and space tourism. GGV Capital compares this transition to the shift from caravel to galleon during the Age of Discovery, asserting that space is becoming predictable commercial transport. GGV forecasts a 10–20 times increase in launch volume over the next decade, leading the space economy to reach several trillions as communication and surveying become feasible. China is creating a transportation ecosystem where rockets are reusable assets with predictable costs.
The successful demonstration of the reusability of the Long March 10B rocket by CASC has significantly changed the competitive landscape for private Chinese startups in the rocket industry. CZ-10B, developed by CASC—the same state-owned enterprise responsible for China's lunar and space station programs—showed that China's state sector is capable of producing a large reusable rocket that can compete with the SpaceX Falcon 9.
For private companies, this raised the question of what competitive advantage they still possess. Over the last decade, Chinese private rocket companies have achieved significant successes: iSpace Hyperbola-1 became the first private rocket to reach orbit; LandSpace Zhuque-2 was the world's first methane and liquid oxygen rocket to reach orbit; and Space Pioneer Tianlong-2 was the first private liquid-fueled rocket in orbit.
However, only LandSpace Zhuque-3 has attempted first-stage recovery, and its attempt in December 2025 ended with an anomaly during landing. Obstacles exist in two aspects. Firstly, payload capacity: CZ-10B delivers about 16 tons to low Earth orbit in reusable mode. Zhuque-3 targets 21 tons in single-use mode and 14 tons in reusable mode. Tianlong-3 aims to deliver 17 tons in reusable mode and 22 tons in single-use mode, but the first flight of Tianlong-3 in 2025 failed, and the vehicle has not yet demonstrated recovery.
Only Zhuque-3 has conducted a recovery attempt, and achieving orbit with recovery remains unattainable for any Chinese private company. Secondly, there is operational reusability: even a successful single recovery does not create a reusable rocket program. Critical indicators include reflight cycles, turnaround time, and the cost per flight after multiple uses.
As the leading reusable rocket sets standards for cost and capability, alternative approaches—such as discontinuing the operation of Space Launch Delta IV Heavy due to uncompetitiveness against Falcon 9 pricing, MadeInSpace Curiosity's focus on solid-fuel rockets, or Orbis' pursuit of orbital servicing—underscore the complexity of competition. Nevertheless, private Chinese rockets can find their niche. LandSpace's methane engine technology surpasses all others except SpaceX Raptor in flight operational experience. Space Pioneer's stainless steel construction for Tianlong-3 allows for reduced costs and increased thermal cycle count compared to aluminum-lithium alloys. Furthermore, JianYuan Technology's approach to recovery using a 'pole' at sea could potentially provide faster turnaround times than net-based recovery.
If private companies can achieve five or more launches with lower infrastructure costs than CZ-10B's sea operations, they can offer differentiated launch services. The growth of satellite internet constellations creates short-term demand that may be large enough for several players. However, private companies must quickly transition from the development stage to the operational stage. The era of demonstrating individual capabilities is ending; the era of reliable and cost-effective launch services is beginning. Private rockets that achieve operational reusability within the next 18 months will secure a place in the constellation market. Those remaining in development by 2028 will face increasingly fierce competition from state-owned reusable rockets and direct SpaceX services.
