(Yicai) Aug. 21 -- China has approved Geespace, a satellite technology unit of private auto giant Geely Holding Group, to conduct commercial trials of satellite Internet of Things services, signaling another step toward opening the sector to private enterprises.

Under the approval document issued yesterday by China’s industry and information technology ministry, Geespace can use its existing satellite constellation to provide users with wide-coverage, low-power, and highly reliable IoT connectivity, enabling round-the-clock intelligent data collection and remote interaction during the two-year trial.

Founded in 2018, Geespace focuses on building and operating low-Earth orbit (LEO) communications constellations, which can connect vehicles, equipment, and other devices in remote areas beyond the reach of terrestrial mobile networks. The company deployed 64 LEO satellites between 2022 and 2025, achieving full coverage of real-time communications signals everywhere on Earth except the North and South Poles.

Geespace is the second private company to receive such a permit after Beijing-based Guodian Gaoke Technology, which was granted permission to conduct commercial trials of satellite IoT services in early May.

A ministry official said the latest approval is an important step in further opening satellite IoT services to private companies and will help stimulate the private economy and support the development of the commercial aerospace industry.

Expanding Commercial Applications

Geespace's satellite IoT solutions have already completed pilot testing across various market segments in China and overseas, and the company is rapidly promoting large-scale application in areas including connected vehicles and robotaxis. Other potential applications include marine fisheries, construction machinery, energy and water resources, transportation and logistics, and emergency communications.

Regulatory support for private companies to operate satellite communications services will help stimulate market vitality and accelerate the development of a new "space-air-ground integrated" ecosystem for the Internet of Everything, Wu Qi, a senior researcher at Pangoal Think Tank, told Yicai.

Over the next two to three years, Chinese companies are expected to accelerate the deployment of LEO satellite IoT constellations to complement terrestrial 5G and 6G networks, Wu predicted. Their commercial applications will also rapidly expand into sectors including smart agriculture, emergency communications, and the Internet of Vehicles, he added.

Editors: Tang Shihua, Emmi Laine