The first attempt to launch a rocket into space by the Chinese company dubbed "China's SpaceX" by state-owned media has failed, with the complete loss of its small satellite payload.

Despite the failure, Landspace Technology Corporation enters China's history books as the first privately-licensed company to launch a commercial rocket into space. LandSpace was founded only in 2015 and also planned to be the first Chinese private company to deliver a satellite into orbit.

The failure is also blown to China's dream of creating a private launch industry run by private firms in the mold of SpaceX.

LandSpace said its launch vehicle, Zhuque-1 (ZQ-1), was carrying a small satellite named "Future" built for the state-run broadcaster, China Central Television (CCTV). It reported the three-stage launch vehicle attained successful burns and ejections of its first and second stages.

An as yet unrevealed problem prevented the third-stage carrying the satellite payload form entering orbit. It is assumed the third stage and its payload were destroyed on re-entry into the Earth's atmosphere.

Before Zhuque carrier rocket was launched, its mission was already completed, claimed LandSpace without explaining the reason for this cryptic post

Had it been successfully orbited, Future would have operated for two years in a Sun-synchronous orbit (SSO). Measuring 320 mm by 295mm by 248 mm, this nano-satellite was roughly the size of a three-unit CubeSat. It would have been used for space science experiments and remote sensing.

Zhuque-1, otherwise called LandSpace-1, was a 19 meter-tall, three-stage solid-propellant rocket. It had a thrust of 45 tons and a takeoff mass of 27 metric tons. It was designed to carry 300 kg of payload into a 300 km low Earth orbit (LEO). Its maiden flight on Oct. 27 was from a mobile platform at the Jiuquan Satellite Launch Center.

LandSpace's future now rests on a successful launch of Zhuque-2 (ZQ-2). This liquid-fuelled launch vehicle is a medium-sized rocket powered by liquid oxygen and methane. LandSpace claims ZQ-2 is capable of lifting a 4,000 kg payload into a 200 km LEO, or a 2,000 kg payload into a 500 km SSO using 80 ton and 10-ton methane engines.

ZQ-2 will be launched in 2020. This two-stage rocket will stand 48.8 meters tall and have a diameter of 3.35 meters. Future iterations of ZQ-2 (ZQ-2A, B and C three-stage rockets) should be able to lift 6,000 kg, 17,000 kg and 32,000 kg to 200 km LEO.