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Thailand rejects 100% foreign ownership for SpaceX satellite business
Thailand will not allow SpaceX or other U.S. companies to establish wholly foreign-owned satellite telecommunications businesses, citing national sovereignty, despite the issue being part of trade negotiations with the United States later this month.
Kirida Bhaopichitr, assistant to the commerce minister, told Bloomberg that low Earth orbit (LEO) satellite telecommunications is the only sector Thailand does not want the United States to invest in through 100% foreign ownership. Thai law caps foreign ownership in certain telecommunications infrastructure at 49%.
The stance effectively blocks SpaceX from operating Starlink through a wholly owned local subsidiary. The Nation reported last year that the Elon Musk-led company sought approval to establish a 100% foreign-owned subsidiary in Thailand, arguing it was a requirement for its investment and that it would not enter the market otherwise, but the proposal was rejected by the government. Starlink has since become SpaceX's largest business, generating US$4.29 billion in quarterly revenue, more than half of the company's total revenue, according to its first earnings report since going public this week.
Kirida said Thailand remains willing to increase imports of U.S. aircraft, liquefied natural gas, soybeans and corn, cut tariffs on some products to zero, and accept U.S. standards for beef, lamb and alcoholic beverages, but not U.S. pork. Thailand is seeking to keep its overall U.S. tariff rate below 19% in the ongoing trade negotiations with Washington.
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