Space – The “Power Arena” of the 21st Century

During the Cold War, the United States and the Soviet Union competed to launch satellites, send humans into orbit, and land on the Moon. Today, the U.S.–China space race has entered a new chapter. Space is no longer merely a symbol of scientific and technological prowess; it has become a strategic pillar of national power, influencing military capabilities, energy resources, data infrastructure, and even the global economy.

Both the U.S. and China view the Moon and near-Earth orbit as “strategic positions” where bases can be established, resources extracted, and satellite systems controlled. This marks the foundation of a new era of competition extending from land, seas, and skies to outer space.

United States: Budgetary Advantage and Private-Sector Strength

The U.S. currently spends around USD 60 billion annually on space activities (2021), several times more than China. Its greatest strength lies in its vibrant private-sector ecosystem: SpaceX, Blue Origin, Lockheed Martin, Boeing, and others serve as core players in NASA’s major projects.

The Artemis program is a prime example: the U.S. aims to return astronauts to the Moon by 2026–2027, building a sustainable base as a stepping stone toward Mars. At the same time, Washington leads the Artemis Accords an international coalition of dozens of nations—designed to establish the “rules of the game” for space exploration and resource use.

Moreover, the U.S. is investing heavily in nuclear propulsion and nuclear energy technologies to shorten travel times to Mars. The Washington Post recently noted this could become America’s “trump card” in maintaining its lead in the space race.

China: Rapid Acceleration and Lunar Ambitions

China, with a budget of roughly USD 16 billion in 2021, still lags behind the U.S. financially, but its pace of growth and determination are noteworthy. Beijing has built the Tiangong space station while pushing forward with its lunar missions:

• Chang’e 7 (2026): Exploration of the lunar south pole.

• Chang’e 8 (2029): Testing resource extraction and lunar base construction technologies.

Its long-term objective is to establish an International Lunar Research Station in partnership with Russia and other allies. Many experts (Time, 2025) warn that if the U.S. faces further delays, China could become the first nation to return humans to the Moon in over half a century. Notably, Beijing is also backing private companies such as LandSpace, ExPace, GalaxySpace, and Deep Blue Aerospace in developing reusable rockets and satellite networks akin to Starlink—essentially a “Chinese SpaceX” backed by the state.

Space Startups: The New Investment Hotspot

The U.S. - China rivalry has fueled global momentum for private space investment. According to Reuters, in 2024 space startups attracted USD 8.6 billion in funding, with projections of a further 40% increase in 2025.

The most capital-attractive areas include:

• Reusable rockets

• Satellite communications and space-based internet

• Space resource mining (Moon, asteroids)

• Nuclear energy and AI-powered navigation technologies

This surge opens opportunities for venture capital and tech funds, as “space” is no longer an exclusive government domain but is increasingly emerging as a new global marketplace.

Strategic Orbits and the Nuclear Dimension

One critical yet often overlooked factor is the competition for “prime orbital real estate” around the Moon locations that provide major advantages in communication and energy. Both the U.S. and China are vying for control of these positions, given their long-term strategic value spanning decades.

In parallel, space-based nuclear technologies (nuclear power and nuclear propulsion) are seen as the gateway to extending human presence beyond Earth’s system. This could prove decisive in determining who leads in the 2030s.

Investment Perspective: Space as the “Stock of the Future”?

Space investment remains fraught with risks due to high costs, technological complexity, and long payback periods. However, much like the internet boom of the 1990s, first movers will hold immense market advantages.

• United States: Strengthened by startups, cutting-edge technologies, and broad international partnerships, but vulnerable to political and budgetary risks.

• China: Fast-growing with robust government backing, but constrained by limited international cooperation and gaps in core technologies.

For investors, this may be the “early-stage” window to gain exposure to space technology funds or enterprises before the sector enters a full-scale boom in the coming decade.

The U.S.–China space race is no longer a purely scientific rivalry but a comprehensive strategic contest. Control over space will confer overwhelming advantages in technology, economics, and national security.

Thus, investing in space is not merely about profits; it is part of the global power struggle. At the current pace of development, the period 2025–2035 could well define humanity’s “new rules of the game” in outer space.