A state-backed Chinese company plans to launch a satellite service to compete with Elon Musk's Starlink in Brazil, representing the latest challenge for the United States as Beijing expands its influence in Latin America.
The announcement from SpaceSail, which is developing high-speed Internet services via satellites in low Earth orbit, comes as Chinese President Xi Jinping this week makes a state visit to Brazil, where he signed an enhanced partnership with the left-wing president Luiz Incio Lula da Silva.
The deal follows a bitter conflict between Musk, a close ally of US President-elect Donald Trump, and Brazilian authorities, who temporarily banned X this year over alleged misinformation on the billionaire investors' social network.
SpaceSail said it had agreed with Brazilian state-owned Telebrs to provide satellite communications and high-speed internet services across Brazil's vast territory, according to Chinese state media. The companies will study demand in areas not served by fiber optic infrastructure, with the aim of commissioning the service in 2026, Brazil's Communications Ministry said.
SpaceSail is committed to being a long-term partner of Brazil, Chief Executive Officer Jie Zheng told reporters on Tuesday.
Brazil has sought to encourage competition from Starlink, which controls nearly half the satellite internet market in Latin America's largest country.
Musk clashed with Brazilian authorities earlier this year after refusing to obey court orders to remove accounts that allegedly promoted extremist content on the country.
Starlink was drawn into the dispute and forced to pay fines on behalf of X, as regulators warned it risked losing its license if it did not comply with court orders. Musk eventually agreed to delete the accounts.
A new row erupted at the G20 summit in Rio de Janeiro when Lula's wife, Rosngela Lula da Silva, swore at Musk during an event on social media regulation on Saturday. After apparently being startled by a ship's horn, Brazil's first lady said: I think it's Elon Musk. I'm not afraid of you. Fuck you, Elon Musk.
One of Lulas's ministers, Paulo Teixeira, approved the insult, posting on X that she had said what stuck in our throats… about Elon Musk and his negative interference.
Musk, the world's richest man, responded to the first lady's insult with laughing emojis, adding that they would lose the next election, an apparent reference to Lula and his Workers' Party, which will face voters again in 2026.
The SpaceSails announcement, which comes amid US concerns about its waning influence in a region once considered Washington's backyard, coincided with a whirlwind diplomatic tour by the Chinese president across South America .
Xi attended the inauguration of a Chinese-built megaport in Peru last week, ahead of the Asia-Pacific Economic Cooperation summit in Lima. He then went to Rio for the G20 leaders' conference before being received on Wednesday in Braslia with full state honors.
Lula and Xi upgraded their overall strategic relationship, already one of the highest in Beijing's hierarchy of bilateral relations, toward a Sino-Brazil community of shared destiny for a fairer world and a more sustainable planet.
The agreement echoes one of Xi's core diplomatic doctrines, building a community of common destiny for humanity, which analysts say refers to Beijing's quest for a multipolar world that will enable its rise while eroding American dominance.
The two leaders also signed dozens of agreements covering agriculture, trade, infrastructure, technology and industry.
But Brazil has not joined China's Belt and Road Initiative, Xi's flagship international infrastructure program, despite being courted by Beijing. Braslia officials believe they can secure Chinese investment without full membership in the BRI.
SpaceSail, which also operates as Shanghai Spacecom Satellite Technology, has ambitious plans to accelerate the deployment of its satellites, with a goal of 15,000 spacecraft in low Earth orbit by 2030, according to state media. It launched its first series of 18 satellites in August, followed by another series in October.
One of its previous international tie-ups in Germany became embroiled in legal disputes over ownership of valuable satellite spectrum licenses.
Additional reporting by Tina Hu in Beijing and Michael Stott in London
