Chinese satellite firm Spacesail signs deals in markets where Starlink faced issues

State-backed Chinese satellite company Spacesail launched two satellites on a reusable rocket on June 1, reaching 200 satellites in orbit by June 5. The launches occurred days before SpaceX's planned $1.8 trillion public listing on June 12. Spacesail has signed agreements in countries where Starlink encountered regulatory or service issues.

The company registered trademarks in South Africa last year and registered a subsidiary in Kazakhstan in January 2025 after Starlink's school connectivity project there stalled over data security requirements.

market entry Spacesail signed its first international partnership with Malaysia's state-linked satellite operator Measat early last year. Measat had previously held a reseller agreement with Starlink. In Brazil, a Spacesail deal with the state telecom followed a November 2024 visit by Chinese President Xi Jinping, and the telecom regulator granted an operating licence in February.

Thailand's state telecom signed a partnership in April.

funding Spacesail raised over $1 billion in 2024 and seeks additional capital to reach 15,000 satellites by 2030. The company said it now has capacity for its first commercial service of tracking maritime vessels and aims to begin broader commercial services by the end of 2026.

Airbus agreed in December to include Spacesail's network on its in-flight Wi-Fi platform. The company is reportedly negotiating with roughly 30 other countries. Spacesail competes domestically with state-owned SatNet for rockets and government support.

Its approach of state backing and government-level deals in non-Western markets mirrors the strategy used by Chinese electric vehicle maker BYD.