China's SpaceSail Intensifies Competition with Elon Musk's Starlink

China is continuing its efforts to surpass the United States, this time targeting Elon Musk’s SpaceX dominance in space. SpaceX has deployed thousands of Starlink internet service satellites in recent years, a dominance China aims to seize through its SpaceSail project. Currently, SpaceSail only has a few hundred satellites in low Earth orbit compared to Starlink, but the project, run by Shanghai Spacecom Satellite Technology (SSST), is working to serve regions inaccessible to Starlink. “SpaceSail is deliberately targeting places where Starlink faces political or regulatory problems,” said Blaine Curcio, founder of Orbital Gateway Consulting, on Wednesday. He likened SpaceSail to BYD, the Chinese electric vehicle manufacturer that leveraged government subsidies to surpass Tesla in global sales. Founded in 2023, SSST is backed by state institutions, including the Chinese Academy of Sciences and the Shanghai municipal government. Its mission is to provide high-speed, secure, and reliable broadband internet worldwide. According to Lan Xinzhen from Beijing Review, SpaceSail also considers national security, aiming to support overseas projects, maritime trade, and diplomatic missions by reducing reliance on Western companies and infrastructure. The initiative has received 6.7 billion yuan (Rp 17.7 trillion) in funding from state institutions, with the SpaceSail project itself financed by the government and Chinese corporate entities or economic organisations through limited investments. SpaceSail launched its first 18 flat-panel satellites on a Long March 6A rocket in August 2024. Subsequent launches of 18 satellites each followed in October and December of that year. Twelve launches have been conducted, with the latest occurring in June 2026, resulting in at least 200 active satellites currently in space. By the end of 2026, an estimated 648 satellites are expected to be active, coinciding with SSST’s goal to commence broader commercial services.