US warns allies against using Chinese satellite firms over security risks

The US State Department is urging foreign governments to avoid doing business with Chinese satellite companies, warning that such partnerships pose serious national security risks by enabling Beijing’s intelligence-gathering and military expansion.

An internal State Department memo, obtained by Defense One, outlines talking points for US officials to dissuade allies from allowing satellite services from “untrusted suppliers” like those based in China, Caliber.Az reports.

The document also highlights legal obligations in China that compel satellite operators to cooperate with state intelligence services, raising concerns over potential data leaks and surveillance.

The memo underscores growing concern that Chinese low-Earth orbit (LEO) satellite providers could serve Beijing’s geopolitical ambitions and monopolise foreign markets through anti-competitive practices. “Countries should take steps to exclude untrusted satellite providers... to protect national security, business secrets, and citizens’ privacy,” the memo reads.

While promoting trusted alternatives, the memo acknowledges that US-based providers, including SpaceX’s Starlink, maintain the right to restrict or withdraw service, often without government oversight. This has drawn criticism from some officials and observers. One former senior defence official, speaking anonymously, warned that Starlink’s political entanglements — particularly Elon Musk’s ties to former President Donald Trump and business links to China — undermine claims of it being a dependable alternative. “Much of this looks like the U.S. government is shilling for SpaceX,” the official said.

Starlink previously refused Ukraine’s request to extend coverage to Russian-occupied Crimea for military purposes, raising concerns about the influence of private firms in wartime scenarios.

The memo's release comes amid rising geopolitical tensions and a new wave of scrutiny on space as a domain of national security. US officials told the Financial Times last week that Chang Guang Satellite Technology Co., a Chinese firm with military links, is providing the Iran-backed Houthis with intelligence to target US naval forces in the Red Sea.

FCC Chairman Brendan Carr echoed the memo’s warnings, telling the FT that Europe may face “even greater concerns” if it turns to Chinese satellite alternatives instead of developing its own secure constellations.

By Tamilla Hasanova