China Challenges Starlink in Race for Satellite Internet Dominance
China is ramping up efforts to challenge Elon Musk’s Starlink in the satellite internet sector, with state-backed companies expanding internationally and investing heavily in low-Earth orbit (LEO) technology.
Shanghai-based SpaceSail has signed agreements to enter Brazil and is in talks with over 30 countries. The company also began operations in Kazakhstan in January, according to the Kazakh embassy in Beijing.
Brazil is also in discussions with Jeff Bezos’ Project Kuiper and Canada’s Telesat for satellite internet services, according to a Brazilian official.
Since 2020, Starlink has launched more LEO satellites than all its competitors combined. These satellites, positioned at altitudes below 2,000 km, provide high-speed internet to remote areas, maritime industries, and military operations.
China sees Starlink’s dominance as a strategic challenge and is investing in rival networks while funding military research to track satellite constellations. In 2023, China launched a record 263 LEO satellites, according to astrophysicist Jonathan McDowell and tech consultancy Analysys Mason.
SpaceSail, controlled by the Shanghai municipal government, plans to deploy 648 LEO satellites this year and up to 15,000 by 2030. Starlink currently operates about 7,000 satellites and aims to reach 42,000 by the end of the decade.
China is also developing the Qianfan, or "Thousand Sails," constellation as part of its first international satellite broadband initiative. Three additional Chinese constellations are in progress, with Beijing planning to launch 43,000 LEO satellites in the coming decades.
Western policymakers have raised concerns that China’s satellite expansion could extend Beijing’s internet censorship influence. A February report by the American Foreign Policy Council suggested that Washington should strengthen ties with Global South nations to counter China’s digital expansion.
China’s foreign ministry stated that it pursues space cooperation for mutual benefit but did not comment on SpaceSail’s international expansion.
Starlink’s role in the Ukraine war has drawn attention from Chinese military researchers, leading to increased state funding for rival satellite networks. Hongqing Technology, founded in 2017, is developing a 10,000-satellite constellation and recently secured 340 million yuan in funding from state-affiliated investors.
SpaceSail raised 6.7 billion yuan (USD 930 million) last year in a financing round led by a state-owned investment fund focused on upgrading China’s manufacturing capabilities.
China published a record 2,449 patents related to LEO satellite technology in 2023, up from 162 in 2019, according to Anaqua’s AcclaimIP database. Many of these patents focus on cost-efficient satellite networks and low-latency communication systems.
Some Chinese research appears to target Starlink directly. A patent application linked to the People’s Liberation Army (PLA) describes Starlink as critical to reconnaissance and military communications while posing security threats.
Chinese researchers are also developing tools to track and monitor Starlink’s constellation. A January study by PLA-affiliated institutes detailed an algorithm inspired by humpback whales’ hunting techniques to track megaconstellations like Starlink.
China is expanding its satellite internet presence to challenge Starlink.
SpaceSail has entered Brazil and Kazakhstan and is in talks with over 30 countries.
Beijing plans to launch 43,000 LEO satellites in the coming decades.
Source: REUTERS