A private, state-linked Chinese space company, Chang Guang Satellite Technology (CGST), has been accused by U.S. officials of assisting Yemen’s Houthi rebels by providing satellite imagery used to target U.S. and international vessels in the Red Sea. This situation highlights the complexity of today’s great power competition. A deeper examination of public records reveals the company’s significant ties to the Chinese party-state and military.
Established in 2014 as a joint venture between the Jilin provincial government and the Changchun Institute of Optics, Fine Mechanics, and Physics—which is part of the Chinese Academy of Sciences—CGST has strong connections to the People’s Liberation Army (PLA). The Changchun Institute has been described by Chinese sources as a key contributor to China’s military modernization. Early support from the PLA Strategic Support Force included access to facilities like the Satellite Measurement and Control Center in Xi’an, which facilitated CGST’s rapid advancements.
Since then, CGST has achieved considerable milestones, including the launch of 41 satellites on a single rocket in 2023 and a laser-communications test transmitting data from a satellite to a ground station at speeds up to 10 Gbps. Plans have been announced to more than double their Jilin remote-sensing constellation to 300 satellites capable of revisiting any location on Earth within ten minutes.
Despite these achievements, CGST faced challenges when it canceled its IPO last year due to high research costs and satellite attrition. The company’s goal of reaching 300 satellites by the end of 2024 is now in doubt, as it has only added nine new Jilin satellites, bringing the total to 117.
CGST emphasizes its Jilin satellites’ utility for agriculture, disaster response, and environmental protection, with occasional admissions of military applications. Official statements have suggested that the satellites were built upon a foundation of military-civil fusion, indicating a dual-use nature. The company has released imagery of significant military interest and has connections with the PLA, including demonstrations of technologies to high-ranking officials.
Recent tensions have arisen from CGST’s reported dealings with non-state actors. In 2023, the U.S. government blacklisted CGST for providing imagery to PMC Wagner, a Russian mercenary group. This serves to underline concerns about the company’s involvement in foreign conflicts with tacit approval from the Chinese government.
CGST has denied connections to the Houthis, although inconsistencies in the company’s claims arise when comparing marketing materials that boast capabilities to track vessels in the open ocean. This furthers the debate regarding the role of Chinese firms in global shipping security.
In summary, CGST has positioned itself as a formidable player in the global space industry, heavily supported by China’s government. The allegations concerning its relationships with groups like the Houthis illustrate the potential implications for international conflict involving U.S. interests in the region. Matt Bruzzese, a senior analyst for BluePath Labs, and P.W. Singer, a strategist at New America, contribute to the dialogue about the intersection of technology, security, and global power dynamics.
