The first stage would use liquid oxygen/kerosene engines, while the second would use liquid oxygen/hydrogen engines. Both stages would be winged, and first flight would be no earlier than 2015.
The two-stages of the rather dumpy V-2 design were stacked one atop the other, giving the vehicle a total depth of 14 m and a height of 32 m. The first stage was unmanned, 28 m long with a 6 m diameter fuselage. The second stage was 32 m long with a main fuselage just over 4 m in diameter. This was topped by a payload pod 3 m in diameter and 20 m long. This perhaps was a modular article that could be flown as a payload-only canister or a manned spacecraft module. Both stages had shuttle-type double-delta wings, with upturned wingtips that acted as vertical stabilizers.
China began preliminary work on advanced manned spaceflight in July 1985. The decision came against a background of vigorous international space activity. The United States had its Strategic Defense Initiative and Space Station Freedom. The Soviet Union had its Buran shuttle system, Mir and Mir-2 space stations, and its own star wars program. Europe was developing the Hermes manned spaceplane, and Japan the Hope winged spacecraft. Even India and China were taking on ambitious space projects. It seemed China would have to take action to remain a world power.
Ren Xin Min, the leading Chinese rocketry expert of the time, believed that China should make a space station its national goal. This would develop all aspects of space technology, including modern launch vehicle capabilities. In early spring 1986, members of a standing committee of the Chinese Academy of Sciences (Wang Da Hang, Wang Ganchang, Yang Jiachi, Chen Fangyun) proposed a family of seven Project 863 plans to accelerate Chinese technical development. These numbered plans covered biology, astronautics, information technology, military technology, automation, energy, and materials science. Astronautics plan 863-2 included section 863-204 space transportation system, which would service the 863-205 space station. It was estimated that two years would be needed for concept studies.
An expert group was established for the 863-204 shuttle, and issued a tender call to Chinese industry within two months of starting work. Two months later 11 alternate proposals were delivered, of which six were selected for feasibility studies. These were delivered in June 1988. The six proposals, ranked in order of technical sophistication, were:
Seventeen experts met in Harbin during 20-31 July, 1988, to make final assessments and recommend a course of action. It finally concluded that development of a winged reusable space shuttle system was acceptable as a national long-term goal to guide technology development But China did not have aerodynamic or rocket technology to develop a hypersonic aircraft with reusable rocket engines. The two designs that were considered technically achievable ranked very close in the expert's rating system - the Tian Jao 1 with a score of 83.69, and the Department 508 manned space capsule with a score of 84.00. However no decision could be made as to one or the other at the conference, and the debate raged further.
The final 863-204 Expert Commission report in July 1989 advocated building the manned capsule, with a first flight date of 2000. This would satisfy the leadership's desire for an early Chinese manned space capability, and establish the essential earthly infrastructure and spacecraft subsystems technology for more advanced systems. However in parallel development of technology for a two-stage-two-orbit horizontal takeoff and landing reusable space shuttle would be pursued, with a first flight date of 2015.
The report failed to impress the government. Chinese leader Deng Xiaoping rejected both plans, saying that neither could be flying in his lifetime. The Chinese space establishment went back to the drawing board. However within three years the plan for a manned capsule would be resurrected as Project 921, which would make its first manned flight in 2003 as the Shenzhou spacecraft. Work continued on basic technology for a follow-on manned spaceplane, but no more was heard of the V-2 design, which seems to have been consigned to the dustbin of history.