Long Leihao, deputy director of the China Satellite Transport Technology Research Academy, was quoted by Beijing-backed Ta Kung Pao daily as saying the central government was interested in the plan for a launch site in the eastern coast of Sanya, China's southernmost city.

Long said the construction of a launching pad could cost up to two billion yuan (24 million dollars), adding the project could invite foreign investment.

Hainan's latitude could help increase the capability of rockets by up to seven percent from that in southwestern China's Xichang site or up to 12 percent from Jiuquan in northern China, Long said.

There is another launching pad in Taiyuan, also in the north.

Long said Hainan had the added advantage of being able to use sea transport.

Moreover, it is safer to launch satellites in Hainan, as the area is less heavily populated compared to the three current sites, he said.

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