China needs to make money and become self-reliant. To do so requires entering markets in which it can compete effectively.
Space technolgy, sattelite launching, military technology and space research are markets with few competitors - so it makes sense to enter this arena, esp. given that China has a perfect geographical location for launching rockets.
Part of the aid that we give to developing countries is to do just this - allow them to develop industries that will bring in money so that aid is no logner neccessary.
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