This development occurs as the U.S. expresses concerns over China's increasing influence in Latin America, a region traditionally dominated by Washington.

Around 46 percent of Brazil's internet reportedly comes through Starlink, so the agreement could be a move to reduce reliance on Musk's company.

A Chinese state-backed company plans to launch a satellite service to compete with Elon Musk’s Starlink in Brazil, in a challenge for the US as Beijing expands its influence in Latin America. The announcement from Spacesail,

SpaceSail plans to bring satellite-based internet access to areas with limited connectivity by deploying its Qianfan, or “Thousand Sails”, constellation, a low-Earth orbit satellite network currently under construction that would support Brazil’s national digital inclusion policies,