China's PLA Daily Warns of a Satellite Arms Race in Low-Earth Orbit

In June 2026, China's PLA Daily — the official newspaper of the People's Liberation Army — published a series of articles warning that the growing militarization of low-Earth orbit (LEO) satellite constellations is fueling a dangerous arms race in space. The newspaper pointed directly to SpaceX's $2.29 billion contract with the U.S. Space Force as a key example of this trend .

The Core Warning: "Orbital Containment"

The PLA Daily argued that the increasing military use of commercial LEO satellite networks risks destabilizing the strategic balance in space. It characterized the U.S. push to weaponize LEO as a form of "orbital containment" aimed at China . The newspaper stated: "The era of the militarised application of low-orbit constellations is arriving at an accelerated pace," and that the "strategic value of space" was becoming "unprecedentedly prominent" .

SpaceX's $2.29 Billion Contract as the Flashpoint

The PLA Daily specifically cited SpaceX's $2.29 billion contract awarded by the U.S. Space Force in late May 2026 to build the Space Data Network (SDN) Backbone — a secure, high-capacity LEO satellite constellation designed to serve as the military's central communications network, linking sensors to shooters . The SDN Backbone, formerly known as MILNET and based on SpaceX's Starshield militarized variant of Starlink, is to deliver a fully operational prototype capability by the end of 2027 .

The newspaper framed this contract as part of a wider U.S. pattern, also referencing earlier SpaceX contracts for missile warning and tracking satellites (a $739 million task order from January 2026) and the existence of Starshield, SpaceX's dedicated military satellite unit, as evidence that the U.S. is rapidly accelerating the militarization of low-Earth orbit .

China's Own Response: Building Rival Constellations

China is racing to build its own LEO mega-constellations to counter perceived U.S. advantages. As of mid-February 2026, China had 108 G60 and 154 SatNet communications satellites in low Earth orbit as part of two planned mega-constellations to compete with Western proliferated LEO networks . Project SatNet is planned to include roughly 13,000 satellites .

The Strategic Backdrop: Ukraine and the Starlink Effect

China's military was surprised by Starlink's extensive use in the war in Ukraine, which heightened the urgency to develop its own equivalent systems . According to a RAND study, PLA strategists view Starlink as a model for resilient battlefield communications and believe it could support missile defense and offensive operations . This perception has shaped China's own LEO strategy, with the PLA seeing Starlink as a major threat that prompted the rapid development of Project SatNet .

In short, the PLA Daily used SpaceX's $2.29 billion Space Force contract as a concrete example of what it sees as an accelerating U.S. military build-up in LEO, warning that the fusion of commercial satellite networks with military infrastructure is pushing space toward an arms race dynamic .