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China’s surging private space industry is out to challenge the US

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China’s surging private space industry is out to challenge the US


“Xi’s goal was that if China has to become a critical player in technology, including in civil space and aerospace, it was critical to develop a space ecosystem that includes the private sector,” says Namrata Goswami, a geopolitics expert based in Montgomery, Alabama, who’s been studying China’s space program for many years. “He was taking a cue from the American private sector to encourage innovation from a talent pool that extended beyond state-funded organizations.”

As a result, there are now 78 commercial space companies operating in China, according to a 2019 report by the Institute for Defense Analysis. More than half have been founded since 2014, and the vast majority focus on satellite manufacturing and launch services.

For example, Galactic Energy, founded in February 2018, is building its Ceres rocket to offer rapid launch service for single payloads, while its Pallas rocket is being built to deploy entire constellations. Rival company i-Space, formed in 2016, became the first commercial Chinese company to make it to space with its Hyperbola-1 in July 2019. It wants to pursue reusable first-stage boosters that can land vertically, like those from SpaceX. So does LinkSpace (founded in 2014), although it also hopes to use rockets to deliver packages from one terrestrial location to another.

Spacety, founded in 2016, wants to turn around customer orders to build and launch its small satellites in just six months. In December it launched a miniaturized version of a satellite that uses 2D radar images to build 3D reconstructions of terrestrial landscapes. Weeks later, it released the first images taken by the satellite, Hisea-1, featuring three-meter resolution. Spacety wants to launch a constellation of these satellites to offer high-quality imaging at low cost. 

To a large extent, China is following the same blueprint drawn up by the US: using government contracts and subsidies to give these companies a foot up. US firms like SpaceX benefited greatly from NASA contracts that paid out millions to build and test rockets and space vehicles for delivering cargo to the International Space Station. With that experience under its belt, SpaceX was able to attract more customers with greater confidence. 

Venture capital is another tried-and-true route. The IDA report estimates that VC funding for Chinese space companies was up to $516 million in 2018—far shy of the $2.2 billion American companies raised, but nothing to scoff at for an industry that really only began seven years ago. At least 42 companies had no known government funding. 

And much of the government support these companies do receive doesn’t have a federal origin, but a provincial one. “[These companies] are drawing high-tech development to these local communities,” says Hines. “And in return, they’re given more autonomy by the local government.” While most have headquarters in Beijing, many keep facilities in Shenzhen, Chongqing, and other areas that might draw talent from local universities. 

There’s also one advantage specific to China: manufacturing. “What is the best country to trust for manufacturing needs?” asks James Zheng, the CEO of Spacety’s Luxembourg headquarters. “It’s China. It’s the manufacturing center of the world.” Zheng believes the country is in a better position than any other to take advantage of the space industry’s new need for mass production of satellites and rockets alike. 

Making friends

The most critical strategic reason to encourage a private space sector is to create opportunities for international collaboration—particularly to attract customers wary of being seen to mix with the Chinese government. (US agencies and government contractors, for example, are barred from working with any groups the regime funds.) Document 60 and others issued by China’s National Development and Reform Commission were aimed not just at promoting technological innovation, but also at drawing in foreign investment and maximizing a customer base beyond Chinese borders.

“China realizes there are certain things they cannot get on their own,” says Frans von der Dunk, a space policy expert at the University of Nebraska–Lincoln. Chinese companies like LandSpace and MinoSpace have worked to accrue funding through foreign investment, escaping dependence on state subsidies. And by avoiding state funding, a company can also avoid an array of restrictions on what it can and can’t do (such as constraints on talking with the media). Foreign investment also makes it easier to compete on a global scale: you’re taking on clients around the world, launching from other countries, and bringing talent from outside China. 

Although China is taking inspiration from the US in building out its private industry, the nature of the Chinese state also means these new companies face obstacles that their rivals in the West don’t have to worry about. While Chinese companies may look private on paper, they must still submit to government guidance and control, and accept some level of interference. It may be difficult for them to make a case to potential overseas customers that they are independent. The distinction between companies that are truly private and those that are more or less state actors is still quite fuzzy, especially if the government is a frequent customer. “That could still lead to a lack of trust from other partners,” says Goswami. It doesn’t help that the government itself is often very cagey about what its national program is even up to.

And Hines adds that it’s not always clear exactly how separate these companies are from, say, the People’s Liberation Army, given the historical ties between the space and defense sectors. “Some of these things will pose significant hurdles for the commercial space sector as it tries to expand,” he says.

Other challenges

None of these new companies are yet profitable, and it will be quite some time before they are. “There isn’t any sign of indication that this industry will flop,” says Hines. “But many experts do think a lot of these companies will go out of business.” Apart from the challenge of attracting customers outside China, many companies are still trying to figure out who exactly their customers ought to be. 

American companies like SpaceX and Blue Origin had billionaire founders ready to burn cash to take on large risks, push past big failures, and finally get off the ground. And while a Chinese billionaire entered the industry last year“there is no Chinese Elon Musk to push these riskier ventures forward,” says Hines. It’s also unclear whether Chinese companies, even those supported by wealthy backers, will have that appetite for risk.

Zheng says one thing Spacety has offered is exceptional transparency with clients for whom it is developing satellites—something that’s still uncommon for Chinese firms. “Many of them have no kind of spaceflight experience,” he says. “They want to see and learn what goes on, but the large companies won’t allow for that. We’re different.”

Lastly, China needs to figure out a legal framework that can guide the commercial industry in more explicit terms, and specify what’s allowed and what is not. It is the only major space power without a specialized space law. (The American version is Title 51 of the United States Code.) While the hope is that free enterprise can generate innovation, national governments are still liable for whatever space activities a country’s private companies conduct. There’s a need to license and approve these missions, ensuring that governments know what they’ve signed up for. 

Despite all this, China’s space industry is rolling forward. These new startups haven’t just adopted American business practices—they’ve also begun to embrace American startup culture as a way to foster business relationships and grow. During my video call with Spacety’s Zheng, the company’s Beijing CEO, Yang Feng, briefly dropped in to say hello, on his way back from a party where he’d been schmoozing and enjoying drinks with many peers and partners in the industry. “It’s part of the way we do business now,” Zheng said. “Innovation is not just new technology itself—it’s also a new way of doing things.” 

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Yann LeCun has a bold new vision for the future of AI

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The Download: Yann LeCun’s AI vision, and smart cities’ unfulfilled promises


Melanie Mitchell, an AI researcher at the Santa Fe Institute, is also excited to see a whole new approach. “We really haven’t seen this coming out of the deep-learning community so much,” she says. She also agrees with LeCun that large language models cannot be the whole story. “They lack memory and internal models of the world that are actually really important,” she says.

Natasha Jaques, a researcher at Google Brain, thinks that language models should still play a role, however. It’s odd for language to be entirely missing from LeCun’s proposals, she says: “We know that large language models are super effective and bake in a bunch of human knowledge.”

Jaques, who works on ways to get AIs to share information and abilities with each other, points out that humans don’t have to have direct experience of something to learn about it. We can change our behavior simply by being told something, such as not to touch a hot pan. “How do I update this world model that Yann is proposing if I don’t have language?” she asks.

There’s another issue, too. If they were to work, LeCun’s ideas would create a powerful technology that could be as transformative as the internet. And yet his proposal doesn’t discuss how his model’s behavior and motivations would be controlled, or who would control them. This is a weird omission, says Abhishek Gupta, the founder of the Montreal AI Ethics Institute and a responsible-AI expert at Boston Consulting Group. 

“We should think more about what it takes for AI to function well in a society, and that requires thinking about ethical behavior, amongst other things,” says Gupta. 

Yet Jaques notes that LeCun’s proposals are still very much ideas rather than practical applications. Mitchell says the same: “There’s certainly little risk of this becoming a human-level intelligence anytime soon.”

LeCun would agree. His aim is to sow the seeds of a new approach in the hope that others build on it. “This is something that is going to take a lot of effort from a lot of people,” he says. “I’m putting this out there because I think ultimately this is the way to go.” If nothing else, he wants to convince people that large language models and reinforcement learning are not the only ways forward. 

“I hate to see people wasting their time,” he says.

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The Download: Yann LeCun’s AI vision, and smart cities’ unfulfilled promises

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The Download: Yann LeCun’s AI vision, and smart cities’ unfulfilled promises


“We’re addicted to being on Facebook.”

—Jordi Berbera, who runs a pizza stand in Mexico City, tells Rest of World why he has turned to selling his wares through the social network instead of through more conventional food delivery apps.

The big story

“Am I going crazy or am I being stalked?” Inside the disturbing online world of gangstalking

August 2020

Jenny’s story is not linear, the way that we like stories to be. She was born in Baltimore in 1975 and had a happy, healthy childhood—her younger brother Danny fondly recalls the treasure hunts she would orchestrate. In her late teens, she developed anorexia and depression and was hospitalized for a month. Despite her struggles, she graduated high school and was accepted into a prestigious liberal arts college.

There, things went downhill again. Among other issues, chronic fatigue led her to drop out. When she was 25 she flipped that car on Florida’s Sunshine Skyway Bridge in an apparent suicide attempt. At 30, after experiencing delusions that she was pregnant, she was diagnosed with schizophrenia. She was hospitalized for half a year and began treatment, regularly receiving shots of an antipsychotic drug. “It was like having my older sister back again,” Danny says.

On July 17, 2017, Jenny jumped from the tenth floor of a parking garage at Tampa International Airport. After her death, her family searched her hotel room and her apartment, but the 42-year-old didn’t leave a note. “We wanted to find a reason for why she did this,” Danny says. And so, a week after his sister’s death, Danny—a certified ethical hacker—decided to look for answers on Jenny’s computer. He found she had subscribed to hundreds of gangstalking groups across Facebook, Twitter, and Reddit; online communities where self-described “targeted individuals” say they are being monitored, harassed, and stalked 24/7 by governments and other organizations—and the internet legitimizes them. Read the full story.

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The US Supreme Court has overturned Roe v. Wade. What does that mean?

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The US Supreme Court has overturned Roe v. Wade. What does that mean?


Access to legal abortion is now subject to state laws, allowing each state to decide whether to ban, restrict or allow abortion. Some parts of the country are much stricter than others—Arkansas, Oklahoma and Kentucky are among the 13 states with trigger laws that immediately made abortion illegal in the aftermath of the ruling. In total, around half of states are likely to either ban or limit access to the procedure, with many of them refusing to make exceptions, even in pregnancies involving rape, incest and fetuses with genetic abnormalities. Many specialized abortion clinics may be forced to close their doors in the next few days and weeks.

While overturning Roe v Wade will not spell an end to abortion in the US, it’s likely to lower its rates, and force those seeking them to obtain them using different methods. People living in states that ban or heavily restrict abortions may consider travelling to other areas that will continue to allow them, although crossing state lines can be time-consuming and prohibitively expensive for many people facing financial hardship.

The likelihood that anti-abortion activists will use surveillance and data collection to track and identify people seeking abortions is also higher following the decision. This information could be used to criminalize them, making it particularly dangerous for those leaving home to cross state lines.

Vigilante volunteers already stake out abortion clinics in states including Mississippi, Florida and North Carolina, filming people’s arrival on cameras and recording details about them and their cars. While they deny the data is used to harass or contact people seeking abortions, experts are concerned that footage filmed of clients arriving and leaving clinics could be exploited to target and harm them, particularly if law enforcement agencies or private groups were to use facial recognition to identify them.

Another option is to order so-called abortion pills to discreetly end a pregnancy at home. The pills, which are safe and widely prescribed by doctors, are significantly less expensive than surgical procedures, and already account for the majority of abortions in the US.

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