Experts and U.S. officials say Beijing’s denial doesn’t match the evidence

The United States government is accusing a Chinese satellite company of helping the Iran-backed Houthi rebels carry out terrorist attacks in the Red Sea. The company, Chang Guang Satellite Technology Co. (CGST), is believed to have supplied the Houthis with satellite images used to strike U.S. warships and commercial vessels, further threatening one of the world’s busiest trade routes. Although the Chinese company strongly denies the charges, U.S. officials and military analysts say the denial doesn’t hold up under scrutiny.

U.S. Officials Say Satellite Images Are Aiding Attacks

State Department spokesperson Tammy Bruce publicly accused CGST of playing a direct role in supporting terrorist activity. During a press briefing on April 17, Bruce stated, “We can confirm the reporting that Chang Guang Satellite Technology Company Limited is directly supporting Iran-backed Houthi terrorist attacks on U.S. interests.”

She added that the support is part of a broader trend of Chinese assistance to dangerous regimes, explaining, “It is clear that Beijing and China-based companies provide key economic and technical support to regimes like Russia, North Korea, and Iran and its proxies.” Bruce described CGST’s behavior as “unacceptable” and said the United States had already raised the issue with Chinese officials in private, but the support continued.

Bruce criticized Beijing’s public image as a peaceful player on the global stage. “China consistently attempts to frame itself as a global peacemaker,” she said, but “their actions and Beijing’s support of the company is yet another example of China’s empty claims to support peace.” She also emphasized that “the United States will not tolerate anyone providing support to foreign terrorist organizations such as the Houthis.”

Satellite Support Enhances Houthi Capabilities

According to U.S. and Yemeni officials, the Houthis have been building closer relationships with both China and Russia as Iran, their original main backer, has come under pressure due to its regional conflicts and weakened economy. With support from Chinese technology, the Houthis have been able to improve the range and accuracy of their missile and drone attacks.

In one example, Yemeni soldiers intercepted a shipment of Chinese-made components last August. These included drone parts and hydrogen fuel cells that were disguised as oxygen canisters. These parts allow the drones to fly farther and avoid detection by producing less heat. “We’ve never seen this technology used by a nonstate or pseudo-state actor before,” said Taimur Khan, an investigator with Conflict Armament Research.

These shipments show that the Houthis are evolving and experimenting with new military technology. “There is evidence of a more concerted effort to diversify, to become more sustainable, to mitigate risk to the direct-from-Iran supply chain,” Khan said.

Satellite imagery plays a crucial role in this evolution. Analysts and officials say the imagery provided by CGST has helped the Houthis plan attacks on U.S. and allied vessels. U.S. Central Command has confirmed that the rebels used these tools to strike targets in the Red Sea, a critical waterway for global oil and cargo shipments.

The impact has been massive. Shipping through the Red Sea has dropped by 60 percent, according to trade experts, as many companies have rerouted their vessels to avoid the threat of attacks. President Donald Trump, in response, has ordered U.S. airstrikes against Houthi positions and has sent a second aircraft carrier to the region.

Deep Ties Between CGST and the Chinese Government

Though CGST calls itself a private company, several reports show it has deep connections to the Chinese Communist Party (CCP) and the People’s Liberation Army (PLA). A 2024 report by the China Aerospace Studies Institute, a think tank affiliated with the U.S. Air Force, explains that CGST “maintains close connections to the PRC government, the Chinese Communist Party, and the People’s Liberation Army.”

The report details how the company’s Jilin-1 satellites were developed as part of the Chinese government’s military-civil fusion strategy. This strategy is meant to allow the Chinese military to use technology from private companies to grow its capabilities. The satellites have been used for purposes such as detecting enemy ships at sea.

The report also shows that CGST is guided by a Party committee led by a high-level Communist Party official named Jia Hongguang. Their Chinese-language website openly states that the company’s mission is to “serve the central mission of the Party.” However, this connection is carefully hidden from international audiences, as “all mention of the CCP is conspicuously absent on the company’s English-language website,” the report points out.

CGST has also received direct attention from top Chinese leaders. In 2023, Chinese Premier Li Qiang visited the company and told it to “implement the instructions” of President Xi Jinping, according to the same report. This makes it difficult to accept CGST’s claim that it is an independent company uninvolved in political or military activities.

CGST and Beijing Deny the Claims

CGST responded to the U.S. accusations through the Global Times, a Chinese state-run newspaper, saying the claims are “completely fabricated and maliciously slanderous.” The company insisted it has “no business dealings with Iran or the Houthi force,” and claimed it is focused on peaceful uses of satellite data in industries like agriculture and environmental protection.

“We strictly comply with relevant laws, regulations, and industry standards both in China and internationally,” CGST stated. “With a mature business model and high-quality services, we are committed to contributing Chinese expertise and solutions to the advancement of the global remote sensing industry.”

Hu Bo, a Chinese analyst with the South China Sea Strategic Situation Probing Initiative, also defended the company. He said it is technically “very difficult” for commercial satellites like those from CGST to track moving warships in real time. According to Hu, the time gap between satellite passes and the limited resolution of images makes it unlikely that CGST could directly help the Houthis guide attacks.

But U.S. officials and independent experts argue that this explanation doesn’t line up with the known facts. While satellites may not provide real-time images, their data can still be used to plan attacks or spot patterns in ship movements.

A Strategic Challenge for the U.S.

For the United States, the issue goes beyond the Houthis. The accusation against CGST fits into a larger pattern of Chinese involvement in global conflicts through unofficial or semi-official channels. China has also been linked to providing military aid to Russia during its war in Ukraine and technology to North Korea’s weapons programs.

By drawing U.S. military attention and resources into the Middle East, the Houthis’ actions are helping shift American focus away from areas like the South China Sea, where China is expanding its influence. Intelligence analyst Tuvia Gering said, “When they started moving more aircraft carriers to the region, because they want to deal with the Houthis and maybe Iran, this was one less aircraft carrier in the South China Sea.”

Even though China claims to be promoting peace in the region, its companies appear to be helping groups that are making the conflict worse. As Bruce said during the State Department briefing, “We urge our partners to judge the Chinese Communist Party and Chinese companies on their actions, not their empty words.”

While CGST and the Chinese government continue to deny any wrongdoing, the evidence paints a different picture. From satellite imagery and intercepted shipments to deep ties with the Communist Party and Chinese military, there is growing proof that CGST has played a role in supporting the Houthis’ deadly campaign in the Red Sea.

This involvement has not only endangered U.S. and allied forces but has also disrupted global trade and security. As U.S. airstrikes continue and the Houthis strike back, the question remains: How long can China claim to support peace while its companies are helping fuel war?

ACZ Editor: There is no way this cooperation exists without direct knowledge of Xi and the CCP