Hold up—where do you get the assessment that LandSpace "is not state funded" and that these startups have "quite limited funds"? My understanding is the diametric opposite. Here's WSJ:
> "At least six Chinese rockets designed with reusability in mind are planned to have their maiden flights this year. In November, the country’s first commercial launch site began operating. Beijing and local governments are giving private-sector companies cash injections of billions of dollars."
> LandSpace raised 900 million yuan ($120 million) in December from a state-owned fund focussed on advanced manufacturing, while in 2020 it raised 1.2 billion yuan ($170 million), Chinese corporate databases showed.
They need to raise a lot more if they want to build a Starship-class rocket. Small government injections like the $120 million last year won't move the needle much. I somewhat doubt the "billions" of dollars WSJ is reporting, unless they include state-owned rocket companies like CASC, or non-rocket companies, like military companies.
> "At least six Chinese rockets designed with reusability in mind are planned to have their maiden flights this year. In November, the country’s first commercial launch site began operating. Beijing and local governments are giving private-sector companies cash injections of billions of dollars."
https://www.wsj.com/world/china/chinas-own-elon-musks-are-ra...
( https://archive.is/Ukmoa )
This is a national security priority for the Chinese state, which is why it's rational to expect a heavy amount of state support.