China’s GPS rival secures

 

China’s GPS rival secures US$1.78 billion as BeiDou system widens reach

China’s BeiDou satellite navigation system (BDS) received commitments of 12.7 billion yuan (US$1.78 billion) for new projects during an event in central China’s Hunan province this week, as Beijing rallies international partnerships to compete with the US-backed Global Positioning System (GPS).

The deals were “conclusively signed” during the Third International Summit on BDS Applications, including 7.83 billion yuan of investment for the Chinese system’s adoption for industrial and consumer use, the state-backed Hunan Daily reported on Friday. An early warning system under Indonesia’s disaster prevention agency was one signatory, though the value of the contract was not disclosed.

Event organisers published 10 major application scenarios for the 30-year-old BeiDou system, including those which could be employed overseas. Xiang Libin, vice-chairman of the National Development and Reform Commission – China’s top economic planner – said at the event Beijing wants to “partner” with other countries in using its system for regional short message communication and international rescue work.

BeiDou agreements have been previously signed with South Africa and Egypt, the official was quoted by state outlet China Daily as saying. Domestically, 1.4 billion pieces of equipment use the Chinese navigation system. The commission will push for BeiDou’s “deep integration” with technically advanced motor vehicles, as well as “smart” agriculture and aerial tourism, Xiang said at the summit.

BeiDou is recognised by the International Civil Aviation Organization of the United Nations. It competes in the lucrative satellite communications market with Europe’s Galileo, Glonass from Russia and the Quasi-Zenith Satellite System from Japan as well as GPS. Chinese officials have said the system is already being used to help manage seaports in Pakistan, river transport in Myanmar, agriculture in Laos and urban planning in Brunei.

The system is also equipped to guide telecommunications, transport, natural resource management and the detection of pipeline leaks. “The main consideration is not surprisingly price, followed by precision and reliability,” said Oh Ei Sun, principal adviser with the Pacific Research Centre think tank in Malaysia. Unless pressured by the West, he said, “most trade- and investment-oriented Southeast Asian countries typically would not overly pay attention to geopolitical concerns.”

GPS became the world’s first satellite navigation system in 1978. It features 31 active satellites, and was made available for global use in 1994. BeiDou, run by the Chinese government, began taking on projects around the Asia-Pacific region in 2012. It has a network of 30 satellites currently in various stages of orbit.

The BeiDou system could appeal to countries friendlier to China, said Alexander Vuving, a professor at the Daniel K. Inouye Asia-Pacific Centre for Security Studies in Hawaii. He added developing countries would have particular interest.

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