FRANKFURT, Germany – In a resolute move aimed at safeguarding national security, Germany has thwarted a full-scale Chinese acquisition of a satellite startup, a confidential source informed AFP on Thursday. The action underscores Berlin’s growing assertiveness in countering increasing economic interdependence with Beijing.
KLEO Connect, a prominent German tech enterprise, is on a mission to establish an extensive constellation of low Earth orbit satellites, with the goal of providing internet connectivity to remote regions, posing a formidable challenge to the likes of Starlink.
The strategic significance of space-based telecommunications has been underscored during the ongoing Ukraine conflict, where Starlink, the brainchild of SpaceX, commanded by entrepreneur Elon Musk, has emerged as a pivotal tool in Kyiv’s arsenal.
Per reports in the German media, Shanghai Spacecom Satellite Technology (SSST) already commands a substantial 53 percent stake in KLEO Connect and sought to acquire an additional 45 percent from the German company EightyLeo. However, the German authorities intervened, following an exhaustive investment review by the Ministry of Economy, concluding that such a move could imperil public security.
Notably, KLEO Connect refrained from offering any comment on the matter, while the Ministry of Economy remained tight-lipped as well.
A protracted tussle for control of KLEO Connect has centered around the ownership of frequency rights, which grant access to coveted satellite spectrum resources, initially registered in Liechtenstein several years ago, as reported by Die Welt newspaper.
This latest development is emblematic of growing apprehensions in Germany regarding Chinese investments. Last year, the German government blocked the sale of two semiconductor companies to Chinese investors, citing security apprehensions. Furthermore, the proposed sale of a stake in Hamburg’s port to a Chinese entity incited a fierce political dispute, eventually resulting in Chancellor Olaf Scholz greenlighting the acquisition, albeit with a reduced ownership share.
Source AFP
