Why China has both spy balloons and spy satellites
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...
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A big question looms over 21st century space-based defense about
defining where airspace ends and space begins.

Currently, there isn't a legal, accepted definition of where space
begins and airspace ends internationally.

Some nations "want to be able to exploit this gray zone between
air and space," Weeden said, adding that's because these countries are conducting activities in that grey zone they don't want them to fall
into either airspace or space.

https://www.axios.com/2023/02/14/china-spy-balloons-satellites-risks

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