Czech Republic for the First Time Uses Foreign Investment Law to Ban Chinese Companies from Building Satellite Center

The Czech government has for the first time used the “Foreign Investment Review Act” to reject a specific investment by a Chinese company to build a satellite center on the grounds of national security.

Headquartered in Beijing, the company Emposat planned to install a 7.3-meter parabolic antenna in Vlkos, South Moravian Region, Czech Republic, to operate a ground satellite station.

The company closely cooperates with China’s top scientific research institution, the Chinese Academy of Sciences, which has been involved in several instances of technological espionage on behalf of the Chinese Communist Party.

Local media Seznam Zprávam on Tuesday (March 25) quoted government insiders as saying that the Czech counterintelligence agency (BIS) issued a warning about this Chinese project, believing that the proposed project could be used for monitoring situations in Earth’s orbit. Subsequently, the Czech government officially halted this investment.

The resolution signed by Czech Prime Minister Petr Fiala stated that the foreign investment plan from Emposat to build and operate a satellite service facility using a 7.3-meter parabolic antenna “might pose a threat to the security or internal or public order of the Czech Republic.”

Since the Foreign Investment Review Act came into effect in 2021, this is the first time the Czech government has prohibited a foreign company’s investment.

In its annual report, BIS identified China and Russia as the biggest security threats to the Czech Republic.

It is reported that Emposat has leased land from a local company named Pekasat, preparing to construct antenna equipment and provide services at the site.

Some experts believe that establishing a ground station network is the main objective of the Chinese company, as it would allow data downloads from satellites orbiting the Earth and facilitate satellite monitoring – both for Chinese satellites and those belonging to other nations.

According to Emposat’s introduction, the company was established in 2016 and has set up over a dozen branches in mainland China, the South Pacific, Africa, South America, and other regions. They offer a comprehensive range of services for commercial aerospace technology research and development, aerospace communication product manufacturing, and in-orbit spacecraft management services.

The company provides an integrated solution for global aerospace users, including rocket launch telemetry control, satellite telemetry control, payload data reception, remote sensing satellite positioning, space collision warning, space debris removal, aerospace digital applications, aerospace education promotion, and other services.