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New PPI Report Urges Bold Action to Counter China’s Growing Capabilities in Space

• April 17, 2025
• Mary Guenther

WASHINGTON — For more than half a century, American leadership in space has been a cornerstone of national security, economic growth, and global influence. But according to a new report from the Progressive Policy Institute (PPI), that leadership is on the verge of slipping away.

Today, PPI released a new report, “Competing for the Upper Hand in the Ultimate High Ground: The Modern Space Race Between the U.S. and China,” authored by Mary Guenther, Head of Space Policy at PPI. The report delivers a stark warning: China is moving aggressively to overtake the United States in space — and unless policymakers act swiftly, America could lose its competitive edge within the next 5 to 15 years.

“Space is no longer just about exploration — it’s the infrastructure of everyday people’s life and warfare,” said Guenther. “Our phones, our financial system, our military all depend on it. And right now, China is investing big, moving fast, and playing to win.”

In the report, Guenther outlines four ways America can change course to retain the high ground in space:

1. Invest in America’s Space Programs: Congress must boost funding for NASA, space technology R&D, and national security space programs. As a share of the federal budget, NASA funding is at historic lows — even as its mission portfolio has expanded dramatically.
2. Modernize Outdated Space Regulations: Space companies face a tangled web of regulatory hurdles that slow down innovation. Modernizing these rules — while maintaining the safety of the uninvolved public and national security — is essential to supporting a competitive U.S. space industry.
3. Harness Private Sector Innovation: China’s advantage is state control. America’s advantage is its private sector. But to leverage it fully, the government must provide clear acquisition strategies, reward innovation, and remove artificial barriers to market entry.
4. Rebuild and Expand International Partnerships: Just as the Apollo program inspired allies worldwide, America’s modern space efforts should continue to be a tool of diplomacy and soft power — especially as China courts new partners through its own space programs.

Space leadership is no longer a niche concern — it is a national imperative. As the report makes clear, space underpins nearly every aspect of American life, from the economy to national defense. The global space economy is projected to triple to $1.8 trillion by 2035, with high-paying American jobs and critical technological innovation on the line. U.S. military operations depend on space-based communications, navigation, and intelligence to maintain a strategic edge. And in the fight against climate change, space-based monitoring remains essential for tracking environmental shifts and managing scarce natural resources.

“This isn’t science fiction — it’s a geopolitical reality,” said Guenther. “China understands that space dominance will drive future prosperity and power. The U.S. led the first space race. But maintaining that lead requires political will and strategic investment.”

Read and download the report here.

The Progressive Policy Institute (PPI) is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Learn more about PPI by visiting progressivepolicy.org. Find an expert at PPI and follow us on Twitter.

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Media Contact: Ian O’Keefe – iokeefe@ppionline.org