Chinese entrepreneurs are setting their sights on the domain once dominated by Elon Musk’s Starlink: the satellite internet sector. Establishing significant competition for his SpaceX offshoot, several Chinese companies are accelerating their efforts to secure a piece of this industry, backed by the Chinese government and numerous private investors.
Currently, Starlink holds a significant portion of the global market in the satellite internet domain thanks to its network of over 1,000 satellites. But Chinese firms are eager to challenge this monopoly. Their vision aligns with the Chinese government who has been working on a national initiative often called “New Infrastructure.”
The Beijing government’s “New Infrastructure” initiative seeks to improve several sectors including 5G, artificial intelligence, and data centers, with satellite internet playing a vital role. It is seen as a significant step in upgrading China’s industry and technology capacity. The project was unveiled in 2020 and is expected to continue until 2025.
According to Euroconsult, a space consultancy, Chinese firms are showing promising signs. The state-owned China Aerospace Science and Industry Corp (CASIC) plans to deploy a “Guowang” constellation of 156 small satellites by 2025. Another Chinese entrant, GalaxySpace, aims to roll out broadband satellites that are lighter and more efficient than their competitors’.
Private investments are flowing into the industry, bolstering these initiatives. Earlier this year, Commsat, a Beijing company that focuses on satellite connectivity for IoT devices, raised 100 million yuan ($15.4 million) in a financing round led by Legend Capital.
Despite the hurdles like regulatory approval and technical challenges, China’s satellite firms are forging ahead. Qian Cheng, one of the co-founders of Commsat, said, “The trend is clear. We’re jumping into this not only for the market size but also for the betterment of society.”
Still, these companies will face stiff competition from not only Starlink, but other global industry giants. Amazon’s Project Kuiper has plans for a network of 3,236 satellites, and UK-based OneWeb, backed by Indian telecom giant Bharti Global, also has ambitions in the satellite internet space.
As a paradigm shift towards satellite internet continues globally, the race is expected to intensify. But among these budding rivals, including Chinese firms, the stakes remain high and the industry’s high cost and high-risk nature, will certainly continue to pose challenges.
Despite these challenges, the participants remain undeterred and they see this as an opportunity to reshape the internet landscape, as they believe that satellite technology can bring the internet to remote corners of the earth, forever changing how people access the web.
Last modified: February 24, 2025
