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SpaceX Facing Geopolitical Turmoil as U.S. Congressman Accuses Company of Suspending Satellite Services in Taiwan

An influential U.S. congressman has suggested that SpaceX is suspending satellite services in Taiwan, potentially violating its obligations to the U.S. government. This is the latest geopolitical turmoil facing the company’s leader, Elon Musk.

Rep. Mike Gallagher, R-Wis., said in a letter to Musk that a committee he leads had learned from multiple sources that satellite broadband provided through SpaceX’s Starshield unit was Taiwan and nearby areas are inactive.

“SpaceX may have suspended broadband Internet service in Taiwan and surrounding areas, a move that may violate SpaceX’s contractual obligations to the U.S. government,” Gallagher wrote in the letter. A copy of the letter was reviewed by The Wall Street Journal.

Gallagher made it clear in his letter that he was concerned about possible communications problems, including communications for U.S. military personnel, in the event of a Chinese military invasion of Taiwan.

Gallagher, a former Marine, currently chairs the House Select Committee on China, which takes a tough stance on China. Last week, he led a bipartisan congressional delegation to Taiwan and reiterated that his top political priority is to prevent Chinese leader Xi Jinping from trying to control the island militarily. He worried that the United States would become involved in the conflict.

According to SpaceX, StarShield is a program of the company designed to provide secure satellite communications and other services to national security customers.

A SpaceX spokesperson did not respond to a request for comment. Forbes earlier reported about the letter.

China claims sovereignty over Taiwan, but the Communist Party has never ruled the democratically self-governed island. The Chinese government often lashes out when it feels its claims to sovereignty over Taiwan are being challenged, including during Gallagher’s recent visit to Taiwan.

On Saturday night, the Chinese Embassy in the United States reiterated in response to reporters’ questions that China urges the United States to abide by the one-China principle, stop arms sales to Taiwan and military ties between the United States and Taiwan, and stop “arming Taiwan in any way.”

Gallagher, through the House Select Committee on China, has questioned some U.S. companies over concerns that their actions would bolster China’s power. He recently announced he would not seek re-election as chairman of the committee.

SpaceX has long worked closely with the U.S. military and intelligence agencies, which have hired the company to launch sensitive, classified government satellites. SpaceX has been expanding this relationship using the satellite technology it develops.

Gallagher said in the letter that the U.S. government has committed more than $100 million to the Star Shield project. The letter states that SpaceX is obligated to provide global access to broadband Internet services to the Pentagon and other government agencies. The letter requires SpaceX to provide more information about Star Shields’ satellite Internet services in Taiwan and nearby areas before March 8.

The tension is yet another example of how SpaceX’s satellite program has embroiled the company and Musk in geopolitics. SpaceX operates the world’s largest fleet of low-Earth orbit communications satellites and regularly launches a batch of new communications satellites.

The network powers SpaceX’s Starlink internet service designed for civilian users.

Ukraine’s communities and military used Starlink to stay connected during Ukraine’s war with Russia.

Earlier this month, Ukraine’s top military intelligence official said that Russian forces have been using Starlink services in occupied areas of Ukraine.

Musk has said that SpaceX has not sold Starlink terminals to Russia. Starlink stated that once SpaceX determines that sanctioned or unauthorized parties are using Starlink terminals, it will take steps to deactivate these terminals.

Last year, Star Shields won a $70 million contract from the U.S. military to provide communications services to dozens of Pentagon partners. Gallagher said in the letter that StarShield currently operates using commercial Starlink infrastructure, providing the U.S. government with more opportunities to use SpaceX satellites.

The Chinese government continues to tighten its control over communications and data, making the use of foreign-owned satellites illegal within its territory. China also considers Taiwan part of its territory.

A map on the Starlink website shows that the service is not available in China. Taiwan is listed as “coming soon.”

In an interview with the Financial Times at the end of 2022, Musk said that the Chinese government had made it clear to him that it disapproved of his launch of Starlink services in Ukraine and asked him to guarantee that he would not sell the service in China.

Outsiders believe that relevant Chinese government departments are worried that if foreign satellite providers launch satellites over China’s sovereign territory (the definition of which includes Taiwan), government departments may lose control of the country’s strictly controlled communications system.

Musk is mostly deferential to China in public. In the view of some observers, Musk is too deferential to this powerful government. As CEO of Tesla, Musk maintains close business ties with China through the electric car company. Last year, 22% of Tesla’s revenue came from China.

Unlike U.S. business leaders who have tried to avoid getting involved in the controversial issue of Taiwan relations, Musk has intervened on the matter several times.

His Taiwan-related comments have caused dissatisfaction among Taiwanese government leaders, including last September when Musk described Taiwan as China’s Hawaii.

In response to the incident, a spokesperson for Taiwan’s Ministry of Foreign Affairs told reporters that the Ministry of Foreign Affairs does not know whether Musk’s free will can be bought or sold, but Taiwan is very clear that it is not for sale.

Musk said in 2022 that Taiwan should agree to become a special administrative region of China similar to Hong Kong. His statement at the time was praised by the then Chinese Ambassador to the United States.

Musk told CNBC last year that it was “inevitable” that China would eventually take control of Taiwan.

China’s official policy is that Taiwan should be reunified. There is no need to read between the lines,” Musk said. “I’m just saying that’s their policy. I think what they’re saying should be taken seriously. They mean it.”

#U.S #congressman #SpaceX #suspend #Taiwan #satellite #internet #services
2024-02-26 01:45:00

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