China's aerospace industry good for economy, officials say

(Ecns.cn)--The successful lift-off and docking of the spacecraft Shenzhou-9 has caused some to question whether China's expensive aerospace program will create any economic benefits on the ground. Media reports have also cast doubts over the government's lack of transparency in regard to space program spending.

Statistics show that for the last decade manned space-flight projects have burned nearly 40 billion yuan. Yet that's just the tip of the iceberg: an even larger sum has gone to other aerospace activities such as satellite launches, construction of a space transportation system, deep space exploration and handling of space debris.

Lv Wei, director of the Department of Technology and Economy at the Development Research Center of the State Council, countered that aerospace technology has also been widely applied to civil fields and greatly benefited the public.

"The aerospace industry and marine industry have become two new driving forces of China's economy," said Lv.

The launch of the Shenzhou-9 indicates that China's economic infrastructure and technology have made great progress, said the Economic Information Daily.

The aerospace economy covers a wide range industries, including energy, steel, new materials, electronics, machinery and communications, explained China Daily. Textile, garment, agricultural and food processing companies are also involved.

The newspaper cited a survey by China Aerospace Science and Technology Corporation, saying that 80 percent of the more than 1,000 types of new materials developed in China in recent years have benefited from space technology. Moreover, nearly 2,000 kinds of space technology have been adopted in various sectors of the national economy.

According to the report "China's Aerospace Activities in 2011" by the State Council, the output of the Beidou Satellite Navigation and Positioning System has exceeded 100 billion yuan. The figure is expected to hit 300 billion by the end of the Twelfth Five-Year Period.

Major listed aerospace companies like China Satellite Communication Co Ltd and the China Aerospace Science & Industry Corporation can create social wealth ranging from tens of billions to hundreds of billions of yuan, the report said.

The "space town" in Jinta County, located near the Jiuquan Satellite Launch Center, is one of the main beneficiaries. "Without the launch center, farmers here could not lead such happy lives," said a local resident.

To support the workers at the center, farmers in the space town have built 342 greenhouses and 19 farms, which are home to around 180,000 domestic animals.

According to Lv Zhonghui, head of the space town, the farmers focus on providing vegetables, meat and fruit for the launch center, which has helped local families build up fortunes.

By 2011, statistics show that the space town's gross income amounted to 273 million yuan, 29.18 million more than 2010, or an increase of 12 percent; total investments in fixed assets reached 130 million yuan, a growth of 32.61 million yuan from the year before; the per capita net income for local farmers also grew by 12 percent, to 7,718 yuan.

Located in northwest China's Gansu Province, Jiuquan is also experiencing an economic boom by attracting a large number of tourists.

Curious aerospace fans swamped the city, which is home to about 1 million residents, during the launch of the Shenzhou-9, and more families are planning "educational tours" with their children for the upcoming summer school holiday, reported CNN.

"I originally planned to take (my son) to Qingdao and Weihai (during the summer vacation), but he wants to see the space city so we'll grant his wish," Mr. Zhu told the Lanzhou Evening News.

Wu, a marketing officer from the Jiuquan Tourism Bureau, told CNN that the success of the Shenzhou-9 would mean a "substantial increase in tourism" for the city this summer.

Industry experts believe that China's aerospace programs are promising and profitable, and not only improve people's livelihoods but also provide impetus for industrial optimization.

In the future, activities such as moon exploration will open up more market opportunities, analyzed the China Trade News.

"Aerospace technologies will directly boost related sectors," said Mei Xinyu, a researcher at the Ministry of Commerce.