Five experts weigh in on how the United States can maintain its lead in the commercial space sector amid increasing competition from China.

Key facts
- •China successfully demonstrated satellite-to-satellite hydrazine refueling in geostationary orbit in 2025.
- •The Pentagon is currently funding multiple vendors to develop in-space refueling capabilities for national security satellites.
- •Rebekah Reed advocates for the U.S. to apply the anchor-tenant contract model to cryogenic propellant transfer infrastructure.
- •Kari A. Bingen of the Center for Strategic and International Studies notes that China’s commercial space sector is expanding rapidly.
As competition between the United States and China intensifies, both nations are increasingly relying on their commercial space sectors to bolster defense and technological capabilities. Experts are currently evaluating the necessary steps for the U.S. to maintain its competitive advantage in space. This discussion highlights the importance of commercial partnerships in building robust defense infrastructure and fostering innovation.
Cryogenic Propellant Transfer Capabilities
Rebekah Reed, Associate Director at the Harvard Kennedy School’s Belfer Center, identifies cryogenic propellant transfer as a critical capability for deep space and lunar operations. Reed notes that China achieved a milestone in 2025 by demonstrating satellite-to-satellite hydrazine refueling in geostationary orbit.
Proposed U.S. Policy Approach
To maintain dominance, Reed suggests the U.S. government should utilize anchor-tenant contracts to fund private vendors for in-space refueling infrastructure. This model mirrors previous successful programs like NASA’s Commercial Orbital Transportation Services and the Commercial Lunar Payload Services project.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by War on the Rocks.



