The US State Department has urged its ally countries not to use Chinese satellite services, cautioning them that it could help Beijing gather sensitive intelligence and military information, a Washington-based defence media outlet has reported, citing a leaked memo.

The outlet Defence One published an article on Monday stating the information was based on an undated, internal memo obtained from the State Department. The document was mainly used to provide talking points for officials, the report said.

Countries dealing with the US were asked not to avail satellite services provided by “untrusted suppliers, such as those from China”. The report did not indicate if the memo was referring to long-term Western allies or all trading partners.

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Governments were asked to “take steps to exclude untrusted satellite providers, such as those based in China, and make sure they cannot enter the market and jeopardise national security, business secrets and citizens’ privacy”, it said.

The memo said that working with China’s space providers operating in low Earth orbit could help Beijing to advance its foreign policy goals and risk transfer of sensitive information to the Chinese government.

Officials were warned that Chinese satellite companies may push out other players, potentially “leaving your host country stuck in a monopolistic, Beijing-controlled market”, it said.

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The memo also had advice for officials who were asked about the Starlink satellite communications service, which is owned by Elon Musk’s SpaceX. The Defence One article said that some observers found the mention of a specific US company “inappropriate”.

Amid growing concerns over cross-Atlantic relations and policy uncertainty of Trump’s administration, European Union officials are turning to French satellite company Eutelsat and other alternatives to avoid dependence on Starlink.

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The US has the largest number of space assets, with more than 8,000 satellites currently in orbit – 12 times the Chinese total.
However, China is nurturing ambitions to become a space power by 2045, and has expanded its cooperation with foreign partners in recent years.

China’s leading commercial company, Chang Guang Satellite Technology Co Ltd, mentions on its website that its latest satellite is available for sale to countries like Egypt and Pakistan.

The company has been on US sanctions list since 2023 and was accused last week by the State Department of supporting attacks on American interests by Iran-backed Houthis in the Red Sea.
The Chinese foreign ministry responded to the accusation by saying that China had been helping to ease the situation rather than doing the opposite.