What We Know About a Chinese Attempt to Install a Satellite Station in New Zealand

‘They worked with a local company that was likely unaware of the equipment’s capability to collect intelligence of military value,’ said NZ’s spy agency.

A Long March-2F carrier rocket, carrying the Shenzhou-21 spacecraft and a crew of three astronauts, lifts off from the Jiuquan Satellite Launch Centre in the Gobi desert, in northwest China on Oct. 31, 2025. Hector Retamal/AFP via Getty Images

New Zealand’s domestic spy agency disrupted an attempt by a Chinese Communist Party (CCP)-linked astronomical institute to quietly install ground-based satellite tracking equipment on local soil.

The New Zealand Security Intelligence Service (NZSIS) revealed that the Purple Mountain Observatory—a China-based institution—tried to establish Ground Based Space Infrastructure (GBSI), a system that interacts with spacecraft.

“They worked with a local company that was likely unaware of the equipment’s capability to collect intelligence of military value and would have no idea who was receiving the data,” the Security Threat Environment 2026 report said.

“Purple Mountain’s close links to the [People’s Republic of China] means they could be compelled to pass on any data collected, however, in this case we assess it would have been willingly passed on.”

The NZSIS worked with other agencies to disrupt the activity, but noted it was not the first time Purple Mountain attempted to install its own satellite tracking station in New Zealand and was “unlikely to be the last.”

“Legitimate GBSI operators in New Zealand and those in the Pacific are encouraged to sharpen their due diligence practices as future attempts will likely use more obfuscation.”

Back in 2024, it was discovered that New Zealand’s Government Communications and Security Bureau (GCSB) had hosted a signals intelligence system deployed by an unnamed foreign agency between 2013 and 2020. It stopped only when the equipment failed.

The recent disclosure has prompted New Zealand regulators to tighten oversight of the sector.

Space infrastructure operators are now regulated under the Outer Space and High Altitude Activities Act, which requires them to get authorisation for regulated activities and to report annually.

Purple Mountain’s Links to the CCP

The observatory is part of the Chinese Academy of Sciences (CAS)—a body that sits directly under China’s State Council.

Within CAS’s own governance, the president simultaneously holds the post of party secretary and a seat on the CCP’s 20th Central Committee, led by Xi Jinping. Further, all 11 members of CAS’s top leadership are Communist Party members.

It is jointly operated by CAS and the Chinese People’s Liberation Army Aerospace Force (PLAASF) (pdf).

Global policy think tank RAND’s CAS Directory classifies Purple Mountain Observatory as a “limited defence partner” and documents 197 co-authored publications with Chinese defence entities between 2021 and 2025

Ideal Location

New Zealand’s remote location in the South Pacific, combined with minimal radio frequency interference and visual obstructions, makes the country ideal for tracking satellites passing over the Asia-Pacific region, the report notes.

New Zealand can often be the first or last place in the world to observe or communicate with satellites transiting orbits that otherwise have low ground-station coverage—a quality that is equally valuable to legitimate space companies and states seeking military and intelligence advantage.

CCP the Only State Spying ‘At Scale’

Overall, the annual report forms part of a broader picture painted by the NZSIS of the People’s Republic of China as the only state conducting espionage against New Zealand “at scale,” using tactics ranging from front companies and state-sponsored cyber intrusion to the covert recruitment of current and former national government officials through fake job advertisements posted on LinkedIn and other professional networking sites.

The report also observes that some recent cyber-attacks were probably the work of state-backed groups trying to destabilise New Zealand.

Andrew Hampton, director-general of security, wrote in the report’s foreword that global geopolitical turbulence was reshaping the threat environment, warning that “all countries are being buffeted by shifting geopolitical forces, polarised societies, ongoing economic pressures and rapid advances in artificial intelligence.”

The revelations come as New Zealand heads towards a general election, with the report separately warning that foreign states are building relationships with candidates, staffers and advisers in the hope of cultivating long-term influence, although it assessed such efforts were unlikely to affect the result.

In response, Beijing’s embassy in Wellington rejected the threat assessment, on its website, describing it as “steeped in Cold War mentality” and part of what it called a co-ordinated campaign of “attacks, smears and vilification of China” by unspecified international forces.

The embassy also warned that New Zealand would “bear responsibility for any consequences” of pursuing the allegations.

Neither the embassy nor Purple Mountain Observatory had responded to requests for comment on the specific claims at the time of publication.