China’s Advancements in Laser Technology and Remote Sensing Satellites: How Commercial Players Can Stay Ahead in the Space Race

In January 2025, China launched the first of a remote sensing satellite constellation for Pakistan from Jiuquan Satellite Launch Center in the Gobi Dessert. Pakistan currently has remote sensing satellites, PRSS-1 and PakTES-1A in orbit. PRSC-E01 is the first of a series of three optical remote sensing satellites to complement the existing system. These satellites provide Earth Observation (EO) data for various applications, including land mapping, agriculture classification, and natural disaster monitoring.

In the same month, China’s private aerospace company, Galactic Energy, successfully deployed five satellites into sun-synchronous orbit (a specialized Low Earth Orbit (LEO) that allows satellites to pass over the same point and at the same time on Earth) for both the Yunyao and Jitianxing constellations. The Jitianxing A-05 satellite is installed with a hyperspectral camera for capturing remote sensing images, facilitating monitoring in sectors such as environmental management, forestry, and urban planning. The Yunyao satellites are equipped with the Global Navigation Satellite System (GNSS) radio occultation payload to collect data on atmospheric temperature, humidity, pressure, and ionospheric electron density.

The China Aerospace Science and Technology Corporation (CASC) has not yet released its 2025 launch plans, but has several major missions scheduled, including crewed cargo missions to Tiangong space station, a near-Earth asteroid sample return mission, and the debut of a range of expendable and reusable launch vehicles.

In 2025, Chang Guang Satellite Technology, one of China’s pioneering commercial remote sensing satellite companies, reported a breakthrough in satellite-to-ground station transmission speeds. The company successfully conducted its first 100 Gigabits per Second (Gbps) laser test for high-resolution remote sensing imagery. Similarly, Cailabs, a French optical communications company, demonstrated a space-to-Earth transmission rate of 200 Gbps in 2024, allowing 3.6 Terabytes (TB) of data to be transferred to Earth in 6 minutes.

Chang Guang Satellite Technology owns Jilin-1, the world’s largest sub-meter commercial remote sensing satellite constellation. It plans to equip all satellites in the Jilin-1 constellation with laser communication units to enhance their efficiency, aiming to establish a network of 300 satellites by 2027. In comparison, Musk’s Starlink has introduced its laser inter-satellite communication system, but has yet to deploy laser satellite-to-ground communication technology.

This breakthrough highlights China’s capabilities in space and satellite technologies. However, the technology might be prioritized for military and space initiatives, rather than being made accessible to commercial enterprises. This is due to China’s strategic vision aimed at national security, technological independence, geopolitical power, and centralized decision-making. In this case, other space companies might have an edge as they commercialize their satellite technologies. To maintain their competitive edge in the rapidly evolving space industry, companies can adopt a combination of solutions.

• Investment in Advanced Technologies: Companies can invest in technologies such as laser communication systems for faster data transfer and higher bandwidth applications, Artificial Intelligence (AI) and Machine Learning (ML) for predictive data analytics insights, and Quantum Key Distribution (QKD) for ultra-secure encryption during satellite communications. For example, Planet Labs, a space data firm operating approximately 200 satellites in orbit, leverages ML capabilities to derive insights from its EO data. By investing in these advanced technologies, companies can differentiate themselves from others and strengthen their market position in the space industry.
• Focus on Cost Efficiency: Space companies can innovate launch technology, such as the reusable SpaceX’s Falcon 9, or partner with other companies for ride-sharing missions to distribute and reduce launch costs. Additionally, they could optimize satellite design through using standard and modular components that can be easily integrated, configured, and replaced without compromising performance.  
• Diversify Revenue Streams: Satellite companies can explore innovative applications and tap into emerging markets eager to leverage satellite data for purposes such as precision agriculture, climate monitoring, or smart city development. By broadening their scope to engage with diverse industries and sectors, satellite companies can unlock new revenue streams and gain a competitive advantage.
• Develop Strategic Partnerships: Collaborations with government agencies, private enterprises, and research institutions can further increase competitive advantage by fostering the exchange of ideas, expertise, and resources. For instance, the partnership between Umbra and European Space Imaging (EUSI) enables remote sensing data users across Europe and North Africa to access the world’s highest resolution spaced-based optical and Synthetic Aperture Radar (SAR) imagery from a single local source. These partnerships can lead to innovative solutions, accelerate Research and Development (R&D), and increase access to broader networks, enabling companies to address complex challenges more effectively.  
• Enhance Sustainability: Many investors prioritize companies that adhere to sustainable principles. Adopting green practices, such as sustainable satellite design to minimize the industry’s environmental footprint, can position a company as an attractive option for funding and investment opportunities. Some examples include fuel-efficient propulsion systems, modular satellite design, and equipping satellites with active debris removal systems.