China Aerospace Science and Technology Corporation (CASC) has decided to beef up space co-operation with French telecom equipment maker Alcatel.

The two companies signed a memorandum of understanding in Beijing on Tuesday. According to the MOU, the two sides will expand co-operation in areas such as telecommunications, and the application, research and launch of satellites.

"Alcatel will give priority to the use of Chinese-made Long March rockets to launch its satellites, while CASC will give priority to the application of satellite parts manufactured by Alcatel," said Wang Liheng, president of CASC. The two companies will also actively push forward co-operation projects on large-capacity broadcast telecommunication satellites and explore the possibility of co-operation on other satellite applications and telecommunication services, Wang said.

"CASC is willing to have active and sincere space technology co-operation and exchanges with all countries on a basis of equality and mutual benefit," Wang said.

CASC is one of the backbone companies of China's space industry, which mainly engages in developing, manufacturing and supplying launch vehicles, satellites and spaceships.

China successfully put its first satellite into orbit aboard a Chinese-made Long March-1 rocket 30 years ago. And now the country is aiming to consolidate its status in the global space sector and boost economic growth by applying aerospace technology.

"Despite the substantial gap between China and advanced countries, China has laid a solid foundation for the future expansion of its space sector," Wang said.

The country has established and improved a research, development, experiment and production system and nurtured many talented people to catapult its space industry to new heights in the coming century, he said.

"We will further improve the payload capacity and reliability of China's Long March launch vehicle series and make the rocket propellant pollution free, while raising the quality," he said.