A Chinese state-backed company is set to launch a satellite internet service in Brazil, aiming to rival Elon Musk’s Starlink.
Spacesail, a developer of high-speed internet services via satellites in low Earth orbit (LEO), made the announcement during Chinese President Xi Jinping’s visit to Brazil. The visit marked the signing of an expanded partnership with Brazilian President Luiz Inácio Lula da Silva.
This development follows ongoing tensions between Musk, owner of SpaceX and its Starlink subsidiary, and Brazilian authorities over allegations of misinformation on his X social media network.
According to Chinese state media, Spacesail has partnered with Brazil’s state-owned Telebrás to deliver satellite communications and broadband internet to underserved areas.
A spokesperson for the Brazilian communications ministry stated that the companies would assess demand in regions lacking fiber-optic infrastructure, with plans to launch the service by 2026.
“Spacesail is committed to being Brazil’s long-term partner,” CEO Jie Zheng told reporters on Tuesday.
Musk-Lula tensions highlight Starlink’s market dominance
Brazil is actively encouraging competitors to Starlink, which controls nearly 50% of the satellite internet market in Latin America.
Earlier this year, Musk faced legal challenges in Brazil after refusing to comply with court orders to remove accounts allegedly promoting extremist content on X. This led to a temporary ban on the platform and fines for Starlink, further straining Musk’s relationship with Brazil’s left-wing government.
Tensions resurfaced recently when Brazil’s First Lady, Rosângela Lula da Silva, addressed Musk during an event on social media regulation.
Spacesail’s announcement aligns with concerns over waning U.S. influence in South America, often regarded as Washington’s “backyard.”
During his diplomatic tour, Xi Jinping attended the opening of a Chinese-built mega-port in Peru before traveling to Rio de Janeiro for the G20 summit. In Brasília, he and Lula upgraded their bilateral relationship to a “Sino-Brazilian community with a shared future”, emphasizing a fairer, more sustainable world.
The two leaders signed 37 agreements spanning agriculture, trade, infrastructure, technology, and industry. However, Brazil declined to join China’s Belt and Road Initiative (BRI), signaling confidence in securing Chinese investments without full membership.
Operating under the name Shanghai Spacecom Satellite Technology, Spacesail plans to accelerate satellite deployment with a target of 15,000 LEO satellites by 2030. The company launched its first rounds of satellites in August and October this year, showcasing its rapid growth and potential to disrupt the market.
