Overview

• The U.S. State Department has publicly accused Chang Guang Satellite Technology Co. Ltd. of supplying satellite imagery to Iran-backed Houthi rebels for targeting U.S. and international vessels in the Red Sea.
• This marks a shift from private diplomatic warnings to a formal confrontation with Beijing, as prior U.S. efforts to address the issue through backchannels were reportedly ignored.
• The Chinese firm is linked to the People’s Liberation Army under China’s military-civil fusion strategy, raising concerns about the intersection of commercial and military objectives.
• The accusations come as U.S. forces intensify airstrikes on Houthi targets in Yemen, with recent operations targeting an oil port used to fund Houthi activities.
• The dispute highlights broader U.S.-China strategic rivalry, with tensions over trade, military influence, and Beijing’s support for adversaries like Iran, Russia, and North Korea.