China’s Push for Low-Orbit Satellite Internet: A Rising Competitor to Starlink

China is accelerating its efforts to develop commercial low-orbit satellite internet services, aiming to compete with global players like SpaceX’s Starlink. This emerging technology, highlighted in a report by the South China Morning Post, is backed by the Ministry of Industry and Information Technology (MIIT). MIIT recently announced guidelines to support operators of low-orbit constellations in the rollout of commercial services. By urging telecom providers to expand the use of satellite internet beyond basic voice and text communication, the ministry seeks to integrate high-speed data services while linking land-based and space-based networks.

China’s State-Backed Satellite Projects

Two major Chinese projects, Spacesail (also referred to as Qianfan) and GuoWang, are leading the charge in establishing low-orbit satellite systems. Both projects have begun deploying satellites, but they still lag significantly behind Starlink, which already boasts thousands of satellites with near-global coverage. Spacesail, supported by Shanghai’s municipal government, launched its first batch of low-orbit satellites in 2024 and now has around 90 satellites in orbit. Meanwhile, GuoWang, backed by Beijing, has ramped up its deployments, sending five satellite batches into space in just the past two months.

Despite their progress, analysts suggest it could take two to three more years before China’s satellite internet systems achieve the scale necessary to compete with Starlink. Globally, low Earth orbit is becoming increasingly crowded, with operators rushing to establish their positions. Guotai Haitong Securities emphasizes that this is turning into a “first-come, first-served” race in the space industry.

Satellite Internet: The Next Frontier

The new MIIT guidelines signal a strategic shift, focusing on integrating satellite internet into devices like smartphones, vehicles, and drones. This could open doors to substantial growth opportunities, particularly in industries reliant on the Internet of Things (IoT). Satellite IoT connections are already poised for major growth, with a report from Omdia forecasting an average annual increase of 23.8% through 2030. These advancements are also expected to benefit remote and offshore operations, addressing connectivity gaps where traditional networks face limitations.

China’s mature high-orbit satellite network, used for navigation, weather monitoring, and communications, is expected to play a role in the nation’s broader strategy. The MIIT urged telecom operators to collaborate with satellite providers to enhance high-orbit systems like BeiDou, China’s alternative to GPS, accelerating the adoption of satellite-to-smartphone connectivity. This integration could make China a formidable player in the global satellite communications market.

Regional and Global Impacts

China’s expanding satellite ambitions have also inspired regional development initiatives. Guangdong province, for instance, recently announced plans to bolster its local space industry with government backing and streamlined approvals for upcoming satellite projects. Experts assert that China’s efforts have reached a critical phase as the global demand for satellite services intensifies.

Licensing appears to be the next frontier in streamlining China’s satellite internet ambitions. Industry insiders anticipate the Chinese government will soon grant licenses to major state-owned telecom companies – China Mobile, China Telecom, and China Unicom. However, given the complexity of satellite operations, it may still take a few years for these services to rival the capabilities and scale of Starlink. Notably, SpaceX began its public trials in 2020 after deploying over 800 satellites, showcasing the significance of reaching critical mass before market entry.

In an era increasingly defined by connectivity, China’s focus on satellite internet holds the promise of driving innovation and offering viable alternatives in the global market. With continuous investment and government support, the nation could soon establish itself as a major player in this critical technology sector.