by MA Yueran

China's solar manufacturers are stepping up moves into the commercial space sector, seeking new growth as competition intensifies in the photovoltaic (PV) market.

Astronstone, one of China's newest commercial launch startups, said on March 23 it had raised 200 million yuan (about $29 million) in a Pre-A+ funding round. The proceeds will be used for rocket assembly and testing, recovery technology validation and capacity expansion.

The round included investors linked to solar equipment maker Maxwell Technologies Co., Ltd. (300751.SZ), amid speculation that Tesla may seek up to $2.9 billion in solar equipment from Chinese suppliers, with Maxwell among potential beneficiaries, fueling investor interest.

The shift comes as China's solar sector faces mounting price competition and overcapacity, pushing companies to search for new growth drivers. Space-based solar is emerging as a new growth area as China steps up its push in commercial space.

Sources said solar firms are also investing in satellite operators such as Shanghai Spacecom Satellite Technology, developer of the Qianfan constellation.

Some listed companies have moved further. Hainan Drinda New Energy Technology Co., Ltd. (002865.SZ) has invested in satellite-related businesses and set up an aerospace unit. Wind turbine maker Goldwind (002202.SZ) has taken a stake in rocket developer LandSpace Technology. Mingyang Smart Energy Group Co., Ltd. (601615.SH) is also seeking to enter the space solar cell segment through a planned acquisition of a chipmaker focused on gallium arsenide solar cells.