The U.S. government is raising red flags about the use of Chinese satellite services, warning other nations that working with Chinese providers could jeopardize national security, leak sensitive military data, and expose citizens’ privacy. This caution stems from an internal memo by the U.S. State Department, recently obtained by Defence One, that outlines the country’s growing concerns over Beijing’s ambitions in space and the implications for global digital infrastructure.
Washington’s Push Against “Untrusted” Satellite Providers
The memo, intended as a set of talking points for U.S. officials, encourages foreign governments to shut out satellite service providers from what it calls “untrusted” sources—chiefly, Chinese companies. While the document doesn’t clearly state whether this warning is aimed solely at U.S. allies or the wider global community, the message is direct: Beijing’s satellite services could pose serious risks.
U.S. officials are being told to make the case that Chinese firms may use satellite networks not just to advance commercial goals, but to support Beijing’s political agenda. The fear is that, once entrenched, Chinese providers could control local markets, eliminate competition, and offer intelligence advantages to China’s government.
A Race for Space Dominance
The warning is part of a broader context of intensifying U.S.-China rivalry in space. The U.S. currently dominates with more than 8,000 satellites orbiting Earth—12 times more than China—but the gap is narrowing. China is aggressively expanding its space presence, hoping to become a major space power by 2045. It’s also forming space partnerships around the world, offering cheaper alternatives to Western satellite services to gain influence, particularly in developing countries.
That includes nations like Egypt and Pakistan, where China’s Chang Guang Satellite Technology Co. Ltd. has been actively marketing its technology. The company, blacklisted by the U.S. since 2023, was recently accused by the State Department of indirectly supporting attacks by Houthi rebels in the Red Sea. Beijing quickly denied the claim, saying its actions in the region are aimed at promoting peace, not fueling conflict.
Concerns Over U.S. Reliance on Starlink
Interestingly, the memo also touches on concerns surrounding America’s own private satellite services—specifically Elon Musk’s Starlink, which is operated by SpaceX. While some officials found it unusual for the U.S. government to single out a domestic company in such a document, it reflects growing discomfort with how much influence a single commercial entity can have on global communications.
Starlink has played a critical role in Ukraine, offering internet access that’s vital for both civilian use and military operations. However, Musk has come under fire for refusing a 2022 Ukrainian request to extend Starlink coverage into Crimea, which would have aided attacks on Russian forces. Musk defended his decision, arguing that escalating the war was not in anyone’s interest.
Further tensions arose in early 2024 when Reuters reported that the U.S. considered limiting Ukraine’s Starlink access during a negotiation involving critical mineral resources. Musk quickly dismissed the claim as false on his social media platform.
Limited Government Oversight Raises Red Flags
The memo acknowledges that the U.S. government has no legal control over Starlink’s operations. Officials are being told to explain to allies that SpaceX could cut off or change service “at will,” since no federal law gives Washington authority over its decisions. That uncertainty is pushing some European Union countries to explore alternative providers like France’s Eutelsat, to avoid placing too much reliance on a single commercial network.
This issue isn’t just about connectivity—it’s about sovereignty. Countries are becoming increasingly aware that whoever controls satellite networks holds significant power over communication, data flow, and even defense logistics.
Satellites as a Strategic Battleground
As space becomes an essential part of national infrastructure—impacting navigation, surveillance, communications, and defense—the U.S. is urging its partners to tread carefully. What might seem like a routine business deal with a Chinese firm could, according to the memo, open the door to foreign surveillance and political manipulation.
This shift in rhetoric from the State Department signals a broader recalibration in how space technology is viewed—not just as a tool for economic development, but as a strategic asset that could redefine the balance of power between global players.
