Beijing Tianbing Technology Co successfully launched a kerosene-oxygen rocket on Sunday, becoming the first private Chinese company to send a liquid rocket into space and taking a new step in the development of reusable rockets, Reuters reported.

Chinese commercial space firms have jumped into the sector since 2014, when the state allowed private investment in the industry. Many have begun manufacturing satellites, while others, including Beijing Tianbing, have focused on developing reusable rockets that can significantly reduce mission costs.

The Tianlong-2 disposable rocket, or “Sky Dragon” in Chinese, was developed by Beijing Tianbing, also known as Space Pioneer. It was successfully launched into orbit from the Jiuquan Launch Center in northwest China on Sunday, according to Chinese state media.

Unlike solid-fuel rockets, which cannot regulate their fuel flow, liquid-fuel rockets have much better control over their flight, and some, such as SpaceX’s Falcon 9, can return to Earth in a controlled descent and make vertical landings.

Beijing Tianbing is expected to finance the launch of the larger Tianlong-3 rocket with a multiple first stage. The company also plans to launch an even larger version of the Tianlong-3, similar to SpaceX’s Falcon Heavy.

The reusable rockets will help China speed up the construction of commercial satellite arrays that can provide services from high-speed internet for airplanes to tracking coal shipments.

In its latest five-year plan for 2021-2025, the Chinese government called for an integrated network of satellites for communications, remote sensing and navigation. According to state media, China currently has more than 400 satellites in space, including commercial satellites.