BY:SpaceEyeNews.
Introduction
On August 15, 2025, one of China’s most ambitious commercial rocket companies, LandSpace Technology, faced a major challenge. Its Zhuque-2E Y3 rocket, powered by methane and liquid oxygen, lifted off from the Jiuquan Satellite Launch Center in northwest China. But less than two minutes into flight, the vehicle experienced an anomaly, cutting short a mission that had been intended to showcase steady progress.
While spaceflight failures are not unusual, this incident matters because LandSpace has been leading China’s private push into reusable, methane-fueled rockets. The outcome now raises pressing questions: What exactly happened? How could this affect LandSpace’s next-generation rocket, the Zhuque-3? And what does this setback mean for China’s broader space ambitions?
This article unpacks the failure, examines its technical and business implications, and places it in the context of China’s rapidly expanding space sector.
The Zhuque-2E Y3 Mission
The Zhuque-2E Y3 launched at approximately 9:17 p.m. Eastern on August 14 (0117 UTC, August 15) from a pad at the Dongfeng Commercial Space Innovation Test Area in Jiuquan. Observers captured video showing the rocket climbing into clear skies, leaving behind a bright plume of exhaust. But just shy of two minutes into the flight, something went wrong. A visible white smoke plume formed at altitude, and the vehicle failed to complete its planned trajectory.
LandSpace issued an official statement more than eight hours later. The company confirmed that the mission had failed due to a “flight anomaly,” but did not provide further details about the cause or the nature of the malfunction. It also did not disclose the payloads, which is common practice in China when a launch does not succeed.
This mission was the third flight of the enhanced Zhuque-2E, a version upgraded with a common bulkhead tank structure and the TQ-15A engine, replacing the earlier TQ-12 used on the original Zhuque-2. Prior to this attempt, the series had built credibility with multiple successes. In fact, the Zhuque-2 program had made global history in July 2023 by becoming the first methane-fueled rocket to reach orbit, an achievement even ahead of American companies like SpaceX and Blue Origin.
The Y3 mission was supposed to further cement LandSpace’s place as a reliable player in commercial launches. Instead, it ended in failure, breaking a streak of four consecutive successful flights.
Why This Failure Matters
At first glance, one launch failure might seem like a temporary issue. After all, nearly every major rocket family has experienced setbacks during development. However, the timing and nature of this failure make it especially important.
First, the engine connection is critical. The failed Zhuque-2E used the TQ-15A vacuum engine on its second stage. LandSpace’s next-generation vehicle, the Zhuque-3, is designed to use the TQ-15B, an evolution of the same engine family. That means any flaws identified in the TQ-15A could also affect confidence in the TQ-15B. Until the root cause of the Y3 anomaly is discovered and addressed, there may be delays in testing and flying Zhuque-3.
Second, LandSpace is under business pressure. Just weeks before the failure, in late July, the company filed preliminary paperwork with the Shanghai Stock Exchange STAR Market, a step toward a planned IPO in early 2026. For investors evaluating LandSpace, launch success rates are a crucial metric. While investors know that spaceflight carries risks, the timing of this failure adds uncertainty right when LandSpace is preparing for greater financial visibility.
Third, there is the credibility factor. LandSpace distinguished itself in 2023 by beating larger rivals to orbit with methane-fueled technology. That win gave the company both prestige and momentum, helping attract clients and contracts. But now, with a failed mission in the record, the narrative shifts. Instead of talking solely about success and innovation, analysts are questioning technical stability, risk management, and timelines.
LandSpace’s Larger Ambitions
LandSpace is not only building expendable rockets. Its flagship project, the Zhuque-3, is a partially reusable heavy-lift rocket currently under development.
The Zhuque-3 is planned to:
- Use nine Tianque-12A engines on its first stage.
- Use the TQ-15B vacuum engine on its second stage.
- Demonstrate reusability, reducing costs per flight and allowing quicker turnaround.
- Launch heavier payloads than Zhuque-2, positioning LandSpace to compete in the global medium-to-heavy lift market.
In June 2025, LandSpace announced it had successfully validated the Zhuque-3 propulsion system during ground testing. The nine-engine array on the first stage was fired together, proving that the engines could operate simultaneously under test conditions. This was seen as a major step toward an inaugural launch, which some industry observers expected before the end of 2025.
However, because Zhuque-3’s second stage uses an engine based on the one involved in the Y3 failure, engineers may need to conduct additional analysis and redesign work before moving forward. That means the debut of Zhuque-3 could be delayed until the issue is thoroughly understood and corrected.
For LandSpace, getting Zhuque-3 right is critical. This rocket is expected to establish the company as a leader in reusable launch technology, directly competing with international players and offering China’s commercial sector more autonomy.
The Broader Chinese Space Context
While LandSpace experienced a setback, China’s state-backed programs continue advancing rapidly. Just one day before the Zhuque-2E Y3 anomaly, the Long March 5B launched from Wenchang, successfully carrying 10 satellites for the Guowang constellation into orbit.
Guowang is an ambitious national project aiming to deploy nearly 13,000 low Earth orbit satellites, similar in concept to SpaceX’s Starlink. The near-term goal is to have 400 satellites in orbit by 2027. The August 13 mission marked the fourth Guowang launch in less than a month, highlighting how quickly China is building its satellite internet network.
This creates a striking contrast. On one side, a private company struggles with a technical failure; on the other, the state sector demonstrates flawless execution on a project of national importance. For clients, investors, and policymakers, the comparison underscores the different levels of stability and resources between commercial startups and state-owned giants.
Yet, the commercial ecosystem remains vibrant. Alongside LandSpace, other companies are developing reusable rockets:
- Space Pioneer is working on the Tianlong-3.
- Galactic Energy is building Pallas-1.
- Orienspace is developing Gravity-2.
- Deep Blue Aerospace is preparing Nebula-1.
- CAS Space has the Kinetica-2 project underway.
- Even the state-owned CASC is developing the new Long March 12A.
This competition shows the intensity of China’s push to diversify launch providers and capabilities. LandSpace’s temporary setback may give rivals more attention, but it does not slow the overall pace of innovation.
What Comes Next for LandSpace
The key question now is how quickly LandSpace can identify the cause of the Y3 failure and prove it has been resolved. That process usually involves:
- Telemetry review from the failed flight.
- Ground testing of suspect systems.
- Supplier and manufacturing checks to rule out quality issues.
- Incremental test flights before resuming full missions.
If LandSpace moves swiftly and communicates openly, it can maintain credibility and continue toward Zhuque-3. If delays stretch, however, the company could lose ground to competitors and face tougher investor scrutiny ahead of its IPO.
Conclusion
LandSpace’s Zhuque-2E Y3 mission was meant to be another step forward in China’s commercial space journey. Instead, it became a reminder that progress in rocketry is rarely smooth. The company now faces technical, business, and reputational challenges all at once.
Yet setbacks can also drive resilience. If LandSpace resolves the issues quickly and delivers on its reusable Zhuque-3 rocket, it could turn this moment into proof of adaptability. Meanwhile, China’s wider space program continues advancing, ensuring that the nation’s overall momentum remains strong.
In the end, the Zhuque-2E’s anomaly is not just a failure—it is a turning point. What LandSpace learns and how it responds will help shape the future of commercial spaceflight in China.
References:
https://www.reuters.com/science/flight-test-chinese-start-up-landspaces-rocket-fails-2025-08-15/
https://spacenews.com/chinese-launch-startup-landspace-suffers-zhuque-2-failure/