So we've been talking about space junk and the cost of going into space (that the Chinese can do it more cheaply), so it's seems synergistic that at the same time that China was launching it's first space module, Space X announces it's newest development--a fully reusable launch system.
Why is this a big deal? If it can be done, they will cut production costs. According to SpaceX founder Elon Musk, a Falcon 9 costs $50 to $60 million, but only $200,000 is for fuel. The rest is the rocket itself.
Musk also said that although they are working on this system, they are continuing with the older system. So, this new idea is not slowing down their progress. Incidentally, their first launch to the ISS has been delayed until around January because of the Soyuz failure. NASA wants to make sure the ISS is fully manned before sending the Dragon capsule up for the first time. Also, NASA is insisting on an escape module in case the astronauts have to abandon the dragon in-flight. (The Shuttle had no such ability, but the Gemini capsules did.) That's going to add a couple of years to their manned-flight ability, which is why most reports say manned by 2015 although SpaceX says it's ready to ferry now.
Here's a SpaceX press release about how it can beat China in a space race, BTW. I doubt they'll be alone in this for long. Several other companies are on the rise as well. I promise I'll be looking into them, too.
