State Dept. Warns of Using Chinese Networks

A confidential State Department memo obtained by Nextgov/FCW and Defense One advises U.S. diplomats to warn international partners against doing business with Chinese satellite communications providers, citing risks of espionage and military exploitation by Beijing. The memo also addresses the geopolitical implications of relying on U.S.-based satellite services, notably SpaceX’s Starlink.

“It is important to ensure satellite services provided by untrusted suppliers, such as those from China, are not permitted to operate in your country,” the memo states. It warns that Chinese space firms operating in low Earth orbit (LEO) may facilitate Beijing’s foreign-policy goals and intelligence gathering. Chinese law allows authorities to compel satellite operators to share sensitive operational data with the central government, increasing cybersecurity and espionage concerns.

While promoting U.S. alternatives as more reliable, the talking points also acknowledge that SpaceX retains unilateral control over Starlink operations. “When a prospective user attempts to place an order for Starlink service, Starlink’s internal systems check the location… and prevent that order from being completed” in restricted regions, the memo notes. It further instructs officials to explain that SpaceX may “restrict the delivery or operation of ground terminals… as local regulations require — and otherwise as it pleases.”

The memo’s explicit reference to Starlink has raised concerns among national-security experts. “Much of this looks like the U.S. government is shilling for SpaceX,” said a former senior defense official, who cited Elon Musk’s erratic control over the system and history of politically charged decisions. Musk, now a senior advisor to President Trump, has previously limited Starlink access in Ukraine’s operations against Russian forces.

Still, the official supported the core advice to avoid Chinese services: “Of course allies shouldn’t use Chinese [satellite communications]; that’s ridiculous. Of course it provides yet another vector for cyber intrusion and a lever arm of influence in crisis.”

The memo’s release comes amid intensifying U.S.-China space competition. The global space economy—critical to both commercial connectivity and military communications—is emerging as a flashpoint in broader geopolitical rivalry. The State Department did not confirm the document’s authenticity but reiterated its policy: “We encourage allies and partners around the world to protect their infrastructure and technology by only allowing trusted vendors.”

Federal Communications Commission Chairman Brendan Carr echoed the concerns last week, telling the Financial Times that European hesitation toward Starlink could leave the continent vulnerable to even greater risks if it turns to Chinese satellite providers. “It’s sort of time for choosing,” he said. [story]

Separately, U.S. officials told the FT that Chang Guang Satellite Technology Co., a Chinese firm with military ties, has been supplying targeting intelligence to the Houthis for attacks on U.S. Navy assets in the Red Sea.

Space remains a critical security domain. In February, the Pentagon confirmed Russia’s development of a nuclear anti-satellite weapon, prompting warnings that a detonation in orbit could paralyze LEO systems for a year. “This capability could pose a threat to all satellites operated by countries and companies around the globe,” said John Plumb, then-Assistant Secretary of Defense for Space Policy.

The memo affirms U.S. efforts to partner with allies on building secure satellite communications infrastructure across all orbits and urges governments to block market access to “untrusted satellite providers.” It also cautions that Chinese firms may engage in anticompetitive behavior to monopolize foreign markets and entrench Beijing’s influence.