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China’s new bid to take on Elon Musk’s Starlink: a state-owned satellite enterprise

  • China Satellite Network Group was launched in late April in Xiongan, the area south of Beijing designated as home to a future smart city
  • Satellite internet is one of the ‘new infrastructure’ technologies that China wants to accelerate with government support

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Elon Musk, founder of SpaceX, speaks during the Satellite 2020 at the Washington Convention Centre on March 9, 2020, in Washington, US. Photo: AFP
In late April, a day before SpaceX launched its 10th batch of satellites this year, Chinese Vice-Premier Han Zheng attended a ceremony in Xiongan, a megacity that is about a two hours’ drive south of Beijing, celebrating the creation of a new state-owned enterprise set up to operate China’s answer to Starlink, run by Elon Musk’s SpaceX.

Known as China Satellite Network Group, the young company is tasked with launching low Earth orbit (LEO) satellites into space, beaming internet services to anywhere on the planet. It reports to the Assets Supervision and Administration Commission, which controls the Chinese government’s stakes in state-owned companies.

Other details about the new firm remain shrouded in mystery.

The company has no official website at the moment, and the government has yet to release any information about the firm’s organisational structure – except that Zhang Dongchen, former general manager at state-owned China Electronics Corporation, was appointed to oversee its establishment.

Yet the company’s strategic importance to Beijing has not gone unnoticed by industry insiders.

Chinese Vice-Premier Han Zheng attends an inauguration ceremony of China Satellite Network Group during an inspection tour to the Xiongan New Area in Hebei province, on April 28, 2021. Photo: Xinhua
Chinese Vice-Premier Han Zheng attends an inauguration ceremony of China Satellite Network Group during an inspection tour to the Xiongan New Area in Hebei province, on April 28, 2021. Photo: Xinhua
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