Feng Yu had considered buying satellites from Hua Xia. But Hua Xia's satellites are only at Dong Fang Hong III, which is the most advanced level in the early 1990s.
Compared to the most advanced satellites in the world, how big is the gap?
From an economic point of view, Dong Fang Hong III's service life is 8 years, and the most advanced satellites can be used for 15 years.
One investment can be used for 15 years, and the other can only be used for 8 years. Although the price difference is almost double, the cost of a satellite is not only the cost of the satellite. There is also the cost of launching the satellite.
If someone launches a satellite once, you will have to launch it twice. Now, the cost of launching a satellite is very high. Why did Hua Xia enter this industry and launch satellites for some foreign countries? This is because the lowest profit from launching a satellite is more than 20%, and some can even reach more than 50%!
Other than the US, Russia, Ukraine, Germany, France, UK, Japan, India, and many other countries are fighting for this market. The US is still the leading country.
After the Soviet Union disintegrated, Russia and Ukraine inherited many of the former Soviet Union's ICBMs. With some modifications, these ICBMs can be used as rockets to launch satellites.
These ICBMs are part of the agreement between the US and the Soviet Union, and can only be kept in their warehouses. But this time, these ICBMs have turned into treasures.
Although the cost of these ICBMs is not zero, it can still reduce their cost. It is the same for the US.
With the rise of Hua Xia, India, and other countries, and the advancement of some European countries' technologies, the US market is not enough. The US thought for a while and felt it is not worth it to attack Russia. That country is poor and is not afraid of war. So, they start to sanction Europe and Asia.
The first to bear the brunt was China, which had risen the fastest.
Hua Xia had just gone through the layoffs and is in pain. Seeing this pain is about to pass, and Hua Xia's economy is about to develop, the US thought of a plan.
First, a missile misfired and blew up one of Hua Xia's embassies. After that, the US produced a report stating that the rocket Hua Xia used to launch satellites is an ICBM. At that time, Hua Xia had used a Yi Xing rocket to save on costs. Hua Xia's economy is still far behind the US.
This Yi Xing rocket is an ICBM with multiple warheads. Hua Xia's commercial satellite launches are to cover up their military and ICBM development.
Therefore, the US did not allow China to launch US satellites, preventing China from receiving any orders to launch satellites. The US accused Hua Xia of all kinds of crimes. Not only Xia stole their satellite technology, but they also accused Hua Xia of stealing their satellite technology, ICBM, submarines, and other technologies.
The US listed a series of groundless charges against China. Not only did they accuse China of stealing their satellites and other technologies, but they also accuse China of stealing their nuclear weapons technology, intercontinental missile technology, submarine technology, etc.
Putting aside the fact that these technologies were so easy to steal, the security in the United States was too lousy. Even in some weaker countries, it would not be so easy to steal, let alone steal so much.
It could be said that they completely denied China's scientific research technology and the contributions made by China's scientists. Of course, at that time, many researchers working in the US kept returning to China. But is it wrong for them to return to their own country?
According to the Americans, every scientific and technological advancement achieved by any other country in the world was stolen from the United States. Even if Hua Xia's technology is better than the US, it is because Hua Xia had stolen other US technologies!
Of course, the US representative who insisted on these claims was refuted by Hua Xia. But no matter what, the US had imposed economic sanctions on Hua Xia and seriously hindered Hua Xia's aerospace technology development.
To put it bluntly, China's military strength and aerospace technology had grown too fast in the past few years, and they felt threatened by China.
Also, the US is afraid of Hua Xia's alliance with Russia. If that happens, the US's status will be challenged.
This prompted Hua Xia to think of another solution. That is to cooperate with Europe. The US's influence on Europe is getting weaker, especially when the US sanctions Europe. Think about Japan, which was close to the US, and when the US economy is in trouble, Japan suffered. This reminded many European countries.
So, Hua Xia had purchased some European satellites, including the first and second generation, to upgrade their technologies.
At the very least, the lifespan of the satellites must be at least 15 years.
There are more than a dozen transponders on a communications satellite, and the annual rental of each transponder is close to 100 million USD. A satellite, including the launch cost, is only a few hundred million USD. If a satellite can be used for 15 years, the profits will be at least 10 times!
If the US can monopolize this industry, the profits will be huge.
Luckily, in Feng Yu's memory, Hua Xia's satellite technology is catching up with the international standards. In some areas, Hua Xia had even surpassed them.
Although Hua Xia's profits are not as high as those big companies in Europe and the US, Hua Xia is self-sufficient and can even sell their satellites for money.
Even now, Hua Xia's Long March 2 rockets are getting lots of orders from Asia as it is the cheapest. Launching a satellite in Europe and the US costs more than 100 million USD, but Hua Xia only needs 70 million USD. 30 million USD is not a small amount.
But now, Hua Xia's satellite technology is still lacking. Even Russia's commercial satellites are not good enough. Russia is best at selling its rocket engines and even sells them to the US.
The profits in this area were obviously not as high as the profits in the satellite industry as a whole. It could even be said to be at the bottom. Hua Xia saw this and decided to start from scratch. He must not follow Russia's footsteps and become a worker for those big companies in Europe and the US.
In the future, Hua Xia will also be competing with Europe and the US. Don't you want to monopolize this market? Hua Xia is offering a package service. The entire satellite system, including the launch, operation, construction of the ground station, personnel training, etc. are all covered. Many Asian and African countries are attracted to Hua Xia.
This is a buyout and not like those companies in Europe and the US, which provide leasing services. Of course, it is better to have autonomy than leasing.
… …
Two days later, Ralph and Kirilenko told Feng Yu about Russia's commercial satellites. Kirilenko told Feng Yu that Russia's commercial satellites are not as good as Hua Xia's, and the prices will not be cheap. Ralph told Feng Yu that the few companies he contacted are only willing to lease their satellites to Feng Yu and not sell them.
Feng Yu thought for a while and decided to ask his higher-ups for help.
… …
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