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Rocket Parcel Delivery Becomes Reality as China Tests New System

China’s private aerospace sector has achieved a milestone in commercial space logistics by successfully testing the delivery of e-commerce parcels via a reusable rocket, the state-run Xinhua News Agency reported Monday. The trial, conducted by Beijing-based startup Space Epoch, involved the launch and recovery of the XZY‑1 verification rocket carrying more than 20 kg of packages sourced from Taobao, one of the country’s largest online marketplaces.

The 26.8‑meter, stainless-steel rocket — weighing 57 tonnes — lifted off May 29 from China’s eastern coast and ascended to 2.5 km in a 125‑second flight. It then performed a sea‑surface, vertical landing near Shandong Province, followed by an 18‑hour recovery operation that returned it in “excellent condition,” according to company founder Wei Yi.

The test payload included items from two Taobao store operators and commemorative postcards produced specifically for the experiment.

Space Epoch reports that the rocket’s cargo module—which spans 120 cubic meters—can carry up to ten tonnes of cargo, theoretically including vehicles and small trucks.

Following the trial, Wei messaged associates: “Package delivered, please check!” He confirmed that cargo conditions met expectations for shock absorption, fire resistance, and moisture protection.

The collaboration between Space Epoch and Alibaba’s Taobao reflects China’s drive to pioneer next‑generation logistics via point‑to‑point rocket delivery. Officials suggest such technology could dramatically shrink delivery times—potentially transforming intercontinental shipping from days or weeks to mere minutes.

Aerospace expert Cao Meng told Xinhua that while the test marked “a long‑term plan” toward “global ‘flash delivery,’” multiple further flights will be needed to validate the rocket’s reusability and durability.

Space Epoch aims to launch its first orbital test flight by the end of 2025 using the XZY‑1, capable of delivering seven tonnes of cargo into a 1,100 km orbit via liquid oxygen and methane propulsion.

Wei acknowledged the current cost per delivery remains prohibitively high for routine parcel service, and said initial use cases will target emergency relief, remote area supply, and time‑sensitive shipments.

This achievement places Space Epoch among a growing number of Chinese private space ventures—including iSpace, LandSpace, Deep Blue Aerospace, and Galactic Energy—progressing toward reusable rocket deployment.

The firm secured approximately US$27.6 million in venture funding in 2023, with plans to expand its stainless‑steel rocket fleet for commercial applications.

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