China’s private space industry reached two historic milestones today (July 10, 2025):

• Space Epoch successfully launched its Yuanxingzhe‑1 reusable rocket using VTVL (Vertical Takeoff, Vertical Landing) technology.

• Two SJ-series (Shijian) satellites reportedly achieved the world’s first in-orbit satellite refueling, signaling a major leap for long-term space sustainability.

Space Epoch’s Yuanxingzhe-1: China’s Answer to SpaceX?

Space Epoch, one of China’s most ambitious commercial space startups, launched its Yuanxingzhe-1 vehicle from a facility in Inner Mongolia. The rocket executed a flawless vertical liftoff and return, using cutting-edge VTVL (Vertical Takeoff, Vertical Landing) technology—similar to SpaceX’s Falcon 9.

This puts China’s private sector squarely on the global stage of reusable launch vehicles, which are vital for reducing the cost of access to orbit.

“This successful VTVL test is a breakthrough for China’s emerging reusable launch capabilities,” said aerospace analyst Luo Mingzhi. “It positions Space Epoch as a key competitor in the global commercial space race.”

Yuanxingzhe‑1 carried a small payload into low Earth orbit (LEO), including university-built CubeSats and sensors meant to test real-time thermal shielding.

In-Orbit Refueling: A First for the World?

In a separate development that stunned the aerospace community, two Chinese Shijian-class satellites reportedly completed in-orbit refueling operations—a world-first if independently confirmed. The feat involves docking in microgravity and transferring fuel without spillage or structural compromise.

This advancement could dramatically extend satellite lifespans, reduce space junk, and make modular, serviceable spacecraft a new norm.

The operation was reportedly coordinated by the China Aerospace Science and Technology Corporation (CASC) but executed via autonomous systems onboard the SJ satellites. The technology mimics terrestrial gas station logistics, but with added challenges like vacuum conditions and millimeter-level precision.

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Why It Matters

These developments reflect a broader shift in China’s space policy—encouraging private-public collaboration, fostering innovation through competition, and pushing for self-reliance in space infrastructure.

While the U.S., EU, and India are expanding their private space capabilities, China’s rapid rise—with reusable rockets and satellite servicing—is forcing the global industry to accelerate its timelines.

What’s Next?

Space Epoch plans another VTVL test in Q4 2025, with orbital reusability trials by mid-2026. Meanwhile, CASC may soon unveil in-orbit robotic assembly missions, based on today’s refueling success.