Germany blocks full Chinese takeover of satellite startup

Germany blocked Chinese takeover of satellite startup on national security grounds; German government pushing to "de-risk" & dial back dependencies; KLEO Connect aims to rival Starlink; frequency rights registered in Liechtenstein.

Germany has blocked a complete Chinese takeover of a satellite startup on national security grounds, sources close to the matter told AFP Thursday, as Berlin takes an increasingly hard line against Beijing.

Concerned at the heavy reliance of Europe's top economy on China, Chancellor Olaf Scholz's government has been pushing to "de-risk" and dial back dependencies.

The German tech company KLEO Connect aims to establish its own network of satellites in low Earth orbit that can provide internet to remote locations, hoping to rival Starlink.

The strategic importance of space telecommunications has been highlighted by the Ukraine war where Starlink, operated by Elon Musk-owned company SpaceX, has become a key battlefield tool for Kyiv.

According to German media reports, Shanghai Spacecom Satellite Technology (SSST) holds about 53 percent of KLEO Connect and wanted to acquire another 45 percent from German firm EightyLeo.

But Berlin blocked SSST's move after an investment review by the economy ministry concluded that it could endanger public security.