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

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 .