"This is not a marathon, it's a line advancement"——An exclusive interview with Jiaozi Capital, decoding local state-owned capital's "aerospace warfare perspective"

Everyday Economic News Reporter | Zhang Yi Everyday Economic News Editor | Dong Xing Sheng

At this year’s National People’s Congress and Chinese People’s Political Consultative Conference, “Aerospace” was included for the first time as an emerging pillar industry in the government work report, marking a new direction for the country’s narrative over the next five years.

Meanwhile, thousands of miles away in Shuangliu, Chengdu, the interstellar glory rocket production base covering 200 acres is rising rapidly; in Ziyang, Sichuan, the first phase of the Xinghe Power’s new solid spacecraft R&D and production base has been put into operation and trial run; in Chongzhou, Sichuan, the blueprint for the global headquarters of the spacecraft AI additive manufacturing of Guoxing Aerospace has begun to take shape.

Few have noticed that these new commercial space forces scattered across the Chengdu metropolitan area are backed by the same investor—Jiaozi Capital, a subsidiary of Chengdu Jiaozijin Control Group.

As the core investment platform of Chengdu’s local state-owned assets, Jiaozi Capital manages and participates in over 80 funds with a total scale exceeding 180 billion yuan, forming a “3+1” fund matrix including “Jiaozi Future,” “Jiaozi Garden,” “Jiaozi AIC,” and “Jiaozi M&A,” incubating and cultivating a large number of national-level specialized and innovative “Little Giants.”

Today, from the complete rocket manufacturing of Interstellar Glory and Xinghe Power, to satellite applications of Guoxing Aerospace, to propulsion systems of Jiuzhou Yunqian, and key components of Chengkong Aerospace, Jiaozi Capital has precisely invested in five commercial aerospace companies, forming a complete industry chain from core components to complete rocket manufacturing. A capital force from the western region is quietly taking root on China’s aerospace map.

What are the considerations behind systematically布局 key links in the industry chain? When “patience capital” becomes a macro buzzword, how do local state-owned assets respond to the demands of the times? Recently, a Daily Economic News reporter (hereinafter “NBD”) conducted an exclusive interview with a relevant person in charge of Chengdu Jiaozi Capital Management (Group) Co., Ltd. (hereinafter “Jiaozi Capital”), attempting to interpret this “frontline advancement” of commercial aerospace from a capital perspective.

Image source: Provided by Chengdu Jiaozijin Control Group

Question of the era: Why commercial aerospace?

“The ultimate goal of commercial aerospace is promising”

NBD: The 2026 National Two Sessions listed aerospace as an emerging pillar industry, and the macro environment emphasizes “patience capital.” Looking back from this coordinate, how does Jiaozi Capital’s investment align with the era’s theme?

Jiaozi Capital: Commercial aerospace is one of the important supports for future national economic development and will be a major battlefield in great power competition. From this perspective, we believe investing in commercial aerospace is macroeconomically feasible.

From the perspective of historical development and societal progress, commercial aerospace is a crucial step for humanity to reach space. Human civilization advances higher and farther, relying on tools like rockets and satellites. Therefore, from these angles, the ultimate goal of commercial aerospace is promising, and patience capital must have the confidence and determination to see a bright future. Combining these, we have a better chance to invest in industries and companies that meet the needs of the times.

NBD: Investing in commercial aerospace requires following market laws and bearing national strategic responsibilities. Some worry that these attributes might conflict, especially when market hotspots and policy directions do not align in certain years. How do you view this issue?

Jiaozi Capital: Actually, these dual attributes are not opposed but are coordinated and unified.

If you only look at a single year, you might find mismatches between market and policy, or notice that companies focusing on business models may achieve financial returns earlier than those focusing solely on technology. However, if you look at a 5, 10, or even 20-year horizon, market laws are driven by consumer demand, and national strategy in economic terms is about ensuring people’s well-being. These are fundamentally unified, so following market laws is also fulfilling national strategic responsibilities.

In the core segment of complete rocket manufacturing, Jiaozi Capital funds have invested in Interstellar Glory and Xinghe Power. Image source: Interstellar Glory provided

Risk question: How to face uncertainty?

“We will maintain maximum patience”

NBD: In the field of commercial aerospace, some companies excel in technology, others in market capability. In your opinion, at this stage, which is more important for commercial aerospace companies—technological breakthroughs or market implementation? Compared to investing in internet, consumer, and other sectors, what are the unique challenges?

Jiaozi Capital: Successful tech companies must excel in both technology and business models. The internet and consumer sectors, under different market conditions, can leverage business models to gain clear advantages and transform these into scale advantages, triggering network effects.

In fact, the terminology in the market reflects this: initially, internet giants like BAT, then AI “Six Little Tigers,” agile “Four Little Dragons,” and now commercial aerospace with complete rockets, rocket engines, satellites, payloads, and constellations. Comparing these to consumer and internet sectors, the concept of “top-tier” is extending from leading companies to specialized top-tier teams within niche fields.

For investors, the goal is always to invest in the best one. The market consensus favors top-tier teams, but the first place within these tiers is often uncertain for a long time. So, decision-making becomes more challenging: previously, the hardest part was securing quotas from top companies; now, it’s also about selecting the top leader within the tier.

NBD: From an industry law perspective, moving from laboratory technology to commercial mass production in aerospace often involves long trial-and-error phases and huge capital consumption. If we compare this investment to a marathon, how far along are we? Is the “pacing” ideal?

Jiaozi Capital: The marathon is a vivid metaphor, but it presumes a known finish line and steady pace, making the process and outcome predictable.

Investment should be more like advancing along a front in total war. The front line won’t always move forward steadily; it may surge ahead at times and retreat at others. Once a war begins, the exact position of the front is hard to predict. Asymmetric warfare means you can estimate the general direction but not the precise end point.

This is very similar to enterprise development. In early growth stages, investors find it hard to predict how far a company will go or how fast it will grow at any future point.

Returning to your question, I think this set of investments isn’t a marathon but a front-line push. If we must compare, we’re currently in a critical phase akin to the key battles of the Liberation War. Once past this, it will be like “a million heroes crossing the Yangtze River.” It’s a tough stage, and many companies may fall here, but we believe the outcome will be positive.

Jiaozi Capital’s investment in Guoxing Aerospace has entered the listing guidance phase and plans to submit an IPO application. If successful, it will become a benchmark for commercial aerospace listings in Southwest China. Image source: Guoxing Aerospace provided

NBD: “Patience capital” is a hot topic, but for financial institutions, patience comes at a cost. How long can your funds afford to be patient?

Jiaozi Capital: For a single fund, patience might be around ten years or less. But for financial institutions, we still maintain maximum patience.

We believe it depends on the perspective. From a financial return standpoint, it can be difficult to sustain patience across cycles. But from a macro perspective, based on industry development logic, cultivating aerospace is not a one-day effort. Industry capital must be long-term, patient capital.

Next station: where to go?

“Future industries are trends, and they are our tracks”

NBD: Compared to Beijing, Shanghai—traditional aerospace hubs—what is Chengdu’s biggest “shortcoming” in continuing to advance in the commercial aerospace landscape? And what are Chengdu’s “strengths”? Is Jiaozi Capital’s investment strategy about filling gaps or enhancing advantages?

Jiaozi Capital: I think we all understand this well. Chengdu still lags behind top cities like Beijing and Shanghai in terms of technological innovation foundation, industrial chain support, and high-end element gathering, but we also face major opportunities.

With the Chengdu-Chongqing twin-city economic circle elevated to a national strategy, the Chengdu municipal government has prioritized commercial aerospace, AI, quantum technology, satellite internet, and low-altitude economy as future industries, issuing special action plans, strengthening fund and element support, and continuously releasing policy dividends and industrial space. Chengdu’s industrial structure has room for adjustment and a stronger latecomer advantage. Additionally, Chengdu’s information, aerospace, and military-industrial bases are solid foundations for future “air-space-ground integration.”

Jiaozi Capital’s layout aims to contribute to Chengdu’s overall industrial development. We support what Chengdu needs. Our investments in the aerospace landscape are not strictly about filling gaps or extending advantages; rather, they combine Chengdu’s existing strengths with the mature rocket and satellite companies in Beijing and Shanghai, serving the entire industrial ecosystem. Industries are interconnected, not isolated. Our investments both supplement Chengdu’s shortcomings and strengthen its advantages.

Image source: Provided by Chengdu Jiaozijin Control Group

NBD: Interstellar Glory moved its production headquarters from Beijing to Chengdu, and Xinghe Power is building a base in Ziyang. Could this “dual-city” model of “R&D in Beijing, manufacturing in Sichuan” become a norm for future high-tech industries? What opportunities does this bring to Chengdu?

Jiaozi Capital: This is a very professional question involving corporate strategy, production management, HR, and capitalization layout.

From our perspective, we support companies prioritizing their own development. The “dual-city” model is primarily driven by corporate needs. Different industries and products have varying sensitivities to transportation costs. If transportation is a significant expense, companies may not want to separate manufacturing and R&D too far apart.

But overall, under the context of a unified national market, nationwide layout is a major trend. For Chengdu, leveraging its strategic hinterland role, acting as a strategic backup, and attracting more enterprises to develop there aligns with national development strategies and enhances Chengdu’s economic vitality. Jiaozi Capital will continue to leverage capital to support Chengdu’s industrial growth.

NBD: Beyond commercial aerospace, Chengdu is also developing low-altitude economy, AI, biotech manufacturing, and other future industries. From Jiaozi Capital’s perspective, what is the next “full industry chain” track? What is the logic behind choosing these tracks? How do they differ from investing in aerospace?

Jiaozi Capital: The “14th Five-Year Plan” explicitly emphasizes forward-looking layout of future industries, highlighting six key areas as new growth points: quantum technology, biotech manufacturing, hydrogen and nuclear fusion energy, brain-computer interfaces, embodied intelligence, and 6G. These tracks all have the potential to develop into “full industry chains.” We do not limit ourselves; we are actively investing in all these sectors.

The logic for choosing tracks is simple: follow the trend. The future industries outlined in the “14th Five-Year Plan” are the trend and our tracks. As for how they differ from aerospace investments, each industry chain has its own characteristics requiring tailored investment strategies, but overall, the macro approach is similar.

We are always learning; industry development never stops, and our learning will never end.