Medium and Long Term Development Plan for China’s Satellite Navigation Industry
Satellite navigation industry is a newly emerged high technology industry, consisting of the manufacture of satellite positioning, navigation and timing system and user terminal system, the operation and maintenance of satellite positioning system, and navigation information service, etc.
To develop the satellite navigation industry with great force has strategic importance in both reality and in a long run, as it will push forward the adjustment of the industrial structure, increase production efficiency, improve people’s living standards, and uplift China’s core competiveness.
In order to boost a fast and healthy development of China’s satellite navigation industry and to push forward the large-scale application of Beidou Satellite Navigation System, we formulate this plan on the basis of the The Outline of the 12th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the 12th Five-Year Plan for National Strategic Emerging Industries，and in line with the application of the major project of the second generation satellite navigation system.
I. Current Situation
i) Internationally, the satellite navigation industry develops with great momentum and has extended great influence toward economic and social development. Currently, the international satellite navigation industry has formed a relatively complete industrial system, with improving performance of the navigation service, enlarging application range, and rapidly increasing market size. The application of satellite navigation technology has become an indispensable measure in the economic and social progress of developed countries, and has extended profound influence on the scientific development of resource usage, environment protection, public service, etc.
ii) Countries around the world are competing in establishing satellite navigation system. The fusion and development of the industry is accelerating and evolving. At the same time of our country forging Beidou Satellite Navigation System, the United States are enhancing its Global Positioning System (GPS). Russia, the European Union, Japan and India are all researching and developing their own satellite navigation systems. Meanwhile, the global satellite navigation industry is showing three new trends in its future development, namely, turning from single GPS application to compatible multi-system application, from navigation-oriented to a combination of navigation, mobile communication, and Internet, from terminal product only to both product and service. Both the international structure that combines competition and cooperation, and the trend of industry fusion and development, will definitely promote the satellite navigation technology to be used in a wider range and with more depth. And it will promote the industry and its related industries to develop in an all around manner.
iii) China’s Beidou Satellite Navigation System has achieved breakthrough progress. The satellite navigation industry has gained great improvement. Both the theoretical research and the technology development of our country’s satellite navigation application have progressed rapidly. Key technology such as navigation chips and aerials have made great breakthrough and have been put into production. Beidou Satellite Navigation System has possessed the regional service ability. It has played an important role in such areas as traffic, transportation, maritime fishery, to name just a few. It is steadily expanding to become a global system. With the fusion development of satellite navigation and transportation, smart terminals and mobile Internet, the application skills have been greatly improved. The productivity and quality of service provided are elevating rapidly. China has become a main exporter of vehicle navigation terminals.
iv) China has a great market size for satellite navigation industry. But it also faces pressure from many aspects such as a system construction that lags behind the industry development requirement, relying on other nations for key technologies, and an industry development environment that urgently requires improving. As the society evolves towards a modern and information-oriented type, the general public is forming an increasingly strong need for innovative and comprehensive service of timing and positioning. In the future, Beidou Satellite Navigation System with its unique advantages such as the short message communication will be used more widely in key factors and key industries of the national economy, as well as in public service and the mass market. After its positioning service gets combined with mobile communication and Internet technology, the satellite navigation application industry will upgrade its structure, thus a wider market will be emerging. However, with the international competition involving multiple products and a fast development of the industry as the overall backdrop, China’s satellite navigation industry still faces prominent problems. First, China’s satellite navigation system construction lags behind the need of industry development. Its usage relies on overseas market. Second, an overall planning is missing. The overall capacity of ground application infrastructure is insufficient, but at the same time there’s duplicated construction, too. Third, we are short of independent innovation ability. With no key technology at hand, being weak in integration application, and a great gap in product and solutions compared with the advanced world standard, the market share for the application of Beidou Satellite Navigation System has been squeezed. Fourth, policies, legislations, regulations and standards are still not prepared. The concentration degree of the industry is low, with no leading enterprises. The environment of the industry development requires immediate improvement. Therefore, we should accelerate the construction of China’s global satellite navigation system, push forward the civil application system to move to Beidou Satellite Navigation System, so that we can promote a healthy sustainable development of China’s satellite navigation industry.
II. Guidelines, principles and Objectives
i) Guidelines. We should thoroughly implement the scientific outlook on development, hold tightly and make great use of the strategic opportunity for satellite navigation industry’s development. We should be guided by the major needs of future economic and social development featuring industrialization, information, urbanization and agriculture modernization. Enterprises should play the main part. The key should be core technology, new form of service, extended market and a higher international competitiveness. We should build an industrial system, shore up the industrial foundation, improve policy environment, innovate development mode, and push forward the fast development of China’s satellite navigation industry, so as to provide support for the sustainable economic and social development.
a) We should plan as a whole and develop in a coordinated way. We should clarify priorities and critical links in the industrial development and make the direction and focal point clear. We should stress coordination between different departments, push forward the fusion development between military and civil fields, improve regional arrangement, connect well major national projects and plans, play a leading role in formulating a well-structured satellite navigation industry development, and avoid blind development and redundant construction.
b) We should lead the industry with market and propel it with policy. Satellite navigation industry must be guided by market needs. We should give full play to the basic role of market in allocating resources and arouse enterprises’ initiative. We should improve application service policy to create a good market environment. We should enhance policy guidance, fulfill international duties, protect national security, promote application of Beidou Satellite Navigation System in defense and security, economic construction, social development, etc.
c) We should build a solid foundation and emphasize innovation. We should strengthen major infrastructure construction, measurement standard system construction, intellectual property protection and utilization, as well as talent cultivation, to build a solid foundation for the industrial development. We should enhance innovation in technology and its application, commercial mode and industrial organization, to push forward the formation of a new mode of fusion development.
d) We should hold an open and inclusive mind and pursue cooperation and mutual development. We should implement a more positive and proactive opening-up strategy; push forward an international service policy with long-term stability and open mind. We should improve the global service capacity of Beidou Satellite Navigation System, nurture international cooperation and competiveness, make good use of resources of both home and abroad, to achieve coordinated development in both internalization and industrialization.
By 2020, China’s satellite navigation industry will form a new innovation-oriented development pattern. The scale of application will be enlarged. The industry will become more internationalized. The size of the industry will surpass 400 billion yuan. Beidou Satellite Navigation System and its compatible products will be widely utilized in important industries and key sectors of the national economy. It will be enter mass consumption market gradually. It will take up 60 percent of the domestic satellite navigation application market, and 80 percent of key application areas. It will become more competitive in the international market.
The industrial system will get optimized and upgraded. China’s satellite navigation industry infrastructure will be improved. A competitive service industry chain will be formed, featuring navigation, positioning, and timing. A group of industry cluster districts will be formed. An array of backbone enterprises and innovative medium and small sized businesses will be nurtured. A set of public service platforms that cover a wide range and with strong support will be established. An industry system will come into being, which is complete in range, reasonable in layout, optimized in structure.
The innovation ability will be significantly enhanced. More budgets will be put into research and development. On the basis of a well-planned scientific layout, we will make full use of the existing scientific and technological resources, push forward the construction of innovative platforms such as satellite navigation application key laboratories, project research center, enterprise technology center, etc. A group of patents and technical standards with our own intellectual property rights will come into being, so that we can bolster the industry’s technological progress and innovate application forms.
The scale of application will be enlarged. The standard of application will be hoisted. Satellite navigation technology will be widely used in every area of the economy and society. It will basically meet the development requirements of the economy and society. In important fields such as energy (electricity), finance and communication, Beidou and other satellite navigation systems will be utilized comprehensively. In other key areas, personal consumption market and public service area, they will be utilized in certain scale.
China’s satellite navigation industry will be able to serve global market. Beidou Satellite Navigation System will have better performance in its service, and will be able to offer interoperability with other satellite navigation systems. Beidou applications will have notably higher international competitiveness and wider range of use.
III. Directions and Tasks
We should lead the industry with market needs, focus on the key areas and weak points, build a solid foundation, pay special efforts to critical technology research and development as well as market nurturing, in order to promote the overall standard and international competitiveness of the industry.
i) Improve navigation infrastructure
We should focus on the needs of our national strategy and key area application, with the aim of promoting the satellite navigation’s service performance, accelerate the construction of a unified, coordinated, complete and open satellite navigation infrastructure system. We should put the emphasis on establishing major ground infrastructure such as reference station networks that multiple modules can work continuously. We should promote data sharing, increase resource application efficiency, create new service models, build a solid foundation, and boost the sustainable development of the industry.
Column 1 Navigation Positioning Infrastructure Construction
Objectives: Beidou Satellite Navigation System will basically realize global coverage and be able to provide navigation and positioning service for global users. Ground infrastructure construction will be enhanced, and provide decimeter-level accuracy in real time and centimeter-level accuracy after post-processing for industries and the mass public in China and neighboring areas. It will also provide basic support for seamless positioning coverage both indoors and outdoors in key regions and certain spots.
Tasks: Beidou Satellite Navigation System will be built into a global satellite navigation system consisting of more than 30 satellites and ground operational control systems. It will be able to provide global service. Meanwhile, satellite navigation signal monitoring and assessing system as well as navigation signal interference detection and weakening system will be built to ensure the system operation to be safe and reliable.
Reference station networks that allows multiple modules to operate continuously will be planned as a whole nationwide, in order to provide enhanced navigation service for various users. Through sharing data, it will also provide basic statistics for signal monitoring, assessing and scientific research.
The comprehensive service system of positioning data will be built on the basis of reference station networks that allow multiple modules to operate continuously, and form a basic platform of positioning service that is complete in range and interconnected, providing support for applications that share data among areas, industries and the mass public.
- Major projects: basic projects----bolstered satellite navigation capability.
- We should draft regulations to protect satellite navigation service from harmful interference. We should build a scheme to crack down illegal production, sales and usage of satellite navigation jammers and any action that interferes satellite navigation service or destroy service infrastructure.
- We should build reference station networks that allow multiple modules to operate continuously and comprehensive positioning data service system as well as the data sharing scheme.
ii)We should make breakthroughs on key technologies.
We should step forward to promote the technology standard of satellite navigation chips, Beidou Satellite Navigation System and other satellite navigation system’s compatible application. We should make breakthroughs on the fusion application technology between satellite navigation and mobile communication, Internet and remote sensing, etc. We should promote the upgrading of core basic products and mass production of cost-effective navigation, timing, precision measurement and orientation products. We should support backbone enterprises and scientific institutions to develop their innovation ability, enhance project experiment platform and commercialization platform’s ability, in order to form a technological innovation scheme where production, study, research and application can be well coordinated.
Column 2: Core technology innovation and general products commercialization
Objectives: A group of technology innovation achievements with our own intellectual property and core competitiveness will be formed. Design and production of critical parts of satellite navigation system reach international standards. A group of cost-effective general products with our own intellectual property and international competitiveness will come into being.
Tasks: Critical technologies: we should make breakthroughs in core chips, core software and high-end products, put emphasis on uplifting chips’ design standard and production skills. We should uplift the level of integration of the chips and lower the energy consumption. We should mainly support the technology innovation of satellite navigation application technology, make breakthroughs on high accuracy positioning skills, seamless positioning skills both indoors and outdoors, satellite navigation vulnerability monitoring, assessing and reduction skills, smart service skills and other critical skills based on multiple modules navigation.
Critical components and devices: we should enhance the innovative development of multiple modules chips and aerials, for example, those consisting of navigation module and communication module. We should develop critical components and devices that combine navigation and sensing.
General Production: we should research and develop industry application products of navigation, timing, precision measurements, orientation, etc. We should research and develop terminal digital products such as smart phones, pads, vehicle navigation systems that combine positioning and navigation; We should uplift the cost-effectiveness and matureness of our products, make our products standardized and internationalized, in order to realize industrialization and entering the international market.
Innovation Ability Construction: we should support several key laboratories that face up basic research, support a group of industry-target, field-target and region-target project research center, in order to build up several bases for both technology innovation and application innovation.
- Major Projects: our core technological abilities.
- Push forward policies that recommend promotion and export of Beidou Satellite Navigation System and its compatible products.
- Set up policies that encourage enterprises to research and develop key technologies of satellite navigation system.
iii) We should promote the application of time-frequency security.
We should trace the Beidou time to China’s national time-frequency measurement benchmark, so that it can provide time-frequency insurance for China’s national security and important fields of the national economy. We should publicize national standard, policies and measures, and enhance capital input. In time of upgrading the infrastructures of important sectors regarding national security, we should spend efforts in utilizing Beidou Satellite Navigation System and its compatible skills and products thoroughly in energy (electricity), communication, finance and public security, and gradually promote its application in other areas in national economy, so that it can provide an important guarantee for the stable and safe operation of the national economy.
Column 3: Important product implication
Objectives: To utilize Beidou timing equipment in industries and areas involved in China’s national security and have great significance in China’s national economy.
Tasks: We should utilize Beidou Satellite Navigation System and its compatible navigation and timing technologies and products in energy (electricity), communication, finance and public security, and encourage application of Beidou Satellite Navigation System and its compatible products in other areas.
- Major projects: Security projects----promote application in important areas.
- Set up application standards and policies that meet both the national security needs and meet the industry characteristics and phases.
iv) We should promote innovative application in the industry.
We should meet the application needs of important industries and areas, fully implement the short message communication technology of Beidou Satellite Navigation System, combine the development of the new-generation information technology, create new service mode, enhance the profound fusion of satellite navigation and important industries in national economy and social progress. We should spend efforts in promote satellite navigation product and service to be utilized in large scale in many industries and areas such as public security, traffic and transportation, disaster prevention and reduction, agriculture, forestry, irrigation, meteorology, land resources, environment protection, police, surveying and mapping, emergency rescue, etc. We should promote the satellite navigation to work with the Internet of things, mobile intercommunication, integration of three networks, etc, and encourage opening up new application fields. We should push forward the formation of comprehensive application solutions, increase operation efficiency, and boost the industries transformation and upgrading.
Column 4: Applciation in Important Industries and Areas
Objectives: To make the satellite navigation products and services be utilized in large scale in important industries and areas such as public security, traffic and transportation, disaster prevention and reduction, agriculture, forestry, irrigation, meteorology, land resources, environment protection, police, surveying and mapping, emergency rescue, etc.
Tasks: To figure out a comprehensive application solution. We should make good use of the national satellite navigation infrastructures, create new application service mode, and establish comprehensive application service platforms targeting application needs of certain industry and area, and form comprehensive solutions of the industries.
Large-scale application: we should consider the development plan of certain industry, achieve key technologies commonly needed by the industry, develop a succession of equipment of special use, promote deep fusion of navigation and the industry, boost the transformation and upgrading of the industries.
Major Policies: the authorities should draft guiding policies that meet the industries’ characteristics and takes the application further.
v) We should enlarge the mass application scale
We should make the satellite navigation meet the mass public market needs such as vehicles and individual users, take positioning service as a main theme, create new commercial service model, build comprehensive systems of positioning information. We should put emphasis on introducing a standard setting of vehicle navigation devices and smart phone terminals with satellite navigation function, so that it can be utilized in multiple ways in social service, tourism, vulnerable group caring, smart city, etc. The mass public application will be enlarged in scale.
Column 5 General Public Application
Objectives: A plenty of positioning service products and mature commercial service mode will come into being. A group of large-scale influential enterprises will rise and form economics of scale.
Tasks: Vehicle information service. We should improve the vehicle positioning service and promote vehicle monitoring, navigation and other comprehensive information service.
Individual positioning service. We should improve the individual positioning service and promote it to be used in social service, tourism, venerable groups caring, smart city, etc.
- Major Projects: General public project----to promote the industry to grow into a large scale.
●Draft policies regarding position reporting and privacy protection.
vi) We should promote overseas market exploration.
We should strengthen studying of international cooperation strategy, participate in international cooperation in satellite navigation industry in many forms, work together on researching and drafting international standards, accelerate Beidou Satellite Navigation System and its application becoming industrialized and internationalized. We should cooperate more closely on talent and technology exchange; uplift the service ability and the industrial application standards of Beidou Satellite Navigation System. We should proactively implement “Going Out” strategy, step up efforts to promote Beidou Satellite Navigation System to be applied overseas, encourage overseas enterprises to develop and utilize Beidou Satellite Navigation System. We should build complete support system for the industry to develop overseas, so that we can uplift our ability to develop globally.
Column6 International Development
Objectives: We will build several overseas application demonstration projects, set up and promote Beidou Satellite Navigation System branding, formulate complete sales and operation service network, and establish an international support system.
Tasks: overseas demonstration projects. Based on the commonly seen requirements and expectations among overseas users in emergency aid, comprehensive disaster prevention, ship/vehicle monitoring and dispatching, we should build a certain number of overseas demonstration projects and promote the industry to become internationalized.
Construction of global market sales and service network. We should enhance overseas market arrangement, build overseas exploration and promotion center, and establish international sales network and global operation and service system.
Construction of service system that matches international development. We will provide research and consulting service for governments and enterprises on policies, markets, laws and financing of international satellite navigation application, which will enhance our overall ability to explore global and regional markets and provide comprehensive service. We will implement talent and technology cooperation, and provide support for the internationalization of the industry.
- Major Projects: International projects----to explore global application market.
- Implement and improve taxation and financial policies that encourage enterprises to “go out.”
IV. Major Projects
Surrounding the overall objective and main tasks of the industrial development, we will organize and implement a series of major projects, in order to accelerate nurturing and developing satellite navigation industry, to increase basic ability of the industry and technological innovation in key areas, and to promote large-scale application and internationalization.
i) Infrastructure projects----to enhance the satellite navigation performance.
We should plan as a whole to build China’s reference station networks that allow multiple modules to operate continuously. A unified standard is needed. We should organize such resources within the country. Through selecting, reforming, upgrading and supplementing, we will formulate reference station networks under unified management, which will help increase the navigation performance and achieve more accuracy. We will integrate maps and geographic information, remote sensing data, traffic information, meteorological information and environmental information, etc, to establish a national comprehensive service system featuring positioning data. We will accelerate the construction of assisting positioning system, promote application of seamless positioning technology both indoors and outdoors in key regions and certain spots. Through this project, we will have a complete infrastructure system to support the comprehensive application of the satellite navigation technologies. We will have decimeter-level accuracy in real time and centimeter-level accuracy after post-processing. We will effectively enhance the performance and service ability of the satellite navigation system, and set a good foundation for enlarging application scales. We will spend five years or so to finish resource integration and to establish a preliminary infrastructure.
ii) Innovation projects----to elevate key technologies and performances.
To breach the bottleneck of “having equipment, lacking chips” in the navigation industry, we will focus on researching, developing and utilizing Beidou chips and terminal products. We will accelerate making our products mature and competitive. We will work on meeting application requirements, put the emphasis on making breakthroughs on a series of technologies which are either basic or cutting-edge, either commonly seen or with key significance, such as fusion chips, combination navigation, application integration, seamless positioning both indoors and outdoors. We will develop some high-performance, cost-effective navigation components, devices and products to improve our innovation ability. We will integrate the current available technological resources, promote the construction and development of satellite navigation application technology laboratory, project research center, enterprise technology center, etc. which will formulate the industrial technology innovation system of China’s satellite navigation industry.
iii)Security Project----to promote application in important areas.
We should push forward standards and regulations construction, and elevate the technology standard and product quality of satellite navigation application.
In systems such as energy (electricity), communication, finance and public security, we will promote application of Beidou Satellite Navigation System and its compatible products. We will strengthen policy guidance. In many areas such as public security, traffic and transportation, disaster prevention and reduction, agriculture, forestry, irrigation, meteorology, land resources, environment protection, police, surveying and mapping, emergency rescue, etc, it will be utilized in a large scale, so that it can promote certain industries to transform and upgrade.
iv) General public projects----to promote the industry to develop into a large scale.
Orienting the mass market needs, we will combine dynamic timing and positioning information regarding traffic, weather and geography, utilizing new generation information technology, in the time of fast development of vehicle manufacturing and mobile communication industry, serving the mass public needs of leisure information, we will promote Beidou and its compatible satellite navigation function to become a standard setting on vehicle navigation and smart phones, so as to utilize the system in social service, tourism, vulnerable group caring , smart city, etc. We will also create new commercial and service models, to promote the industrialization of Beidou Satellite Navigation System and to formulate a large-scale profitable terminal product pool.
v) Internationalization Project----to explore the International application market.
Based on the commonly seen requirements and expectations among overseas users in emergency aid, comprehensive disaster prevention, ship/vehicle monitoring and dispatching, we should enhance efforts in promoting Beijing Satellite Navigation System application, build a certain number of overseas demonstration projects to explore the international market. We should proactively promote Beidou Satellite Navigation system to enter the International Civil Aviation Organization and the International Maritime Affairs Organization to increase application in civil aviation affairs and ocean shipping. We will establish a satellite navigation enhance system and a unified time and positioning standard system that cover Asia-pacific area, establish infrastructure and comprehensive service project that will help satellite navigation industry going internationalized. We will carry out research and consulting service in areas such as policy, market, legislature, finance of international satellite navigation application, to elevate our comprehensive service ability internationally.
In order to implement this plan in full operation, practice every important task in full details, create a fulfilling environment for industrial development, we must strengthen organization and coordination, and put into place strong security measurements.
i) We will accelerate establishing and improving a coordinated development scheme regarding China’s satellite navigation industry, which will enhance communication and coordination between military and civil departments, and different government branches. We will plan as a whole for all social resources, no matter it belongs to central government, local governments or other social parts. We will plan as a whole for the infrastructure construction and application of satellite navigation. We will do research and file policies that promote industrialization to guide an optimized industry layout. We will establish well-managed market monitoring and management scheme, enhance market information monitoring and alarming, and implement dynamic restructuring according to current situation. We will give full play to the industry association and other professional organizations in guiding, coordinating, serving the industry, emphasize self-discipline among industry and enterprises, so that to build a favored competition environment for the satellite navigation industry.
ii) We will publish national policies and promote application service.
We will publish Beidou Satellite Navigation System White Paper on a regular basis, introducing the purpose, principle, policies and related agreements of the system’s development, providing free, open, safe and reliable civil service. We will also publish the construction progress and operation condition, guide the society to utilize Beidou Satellite Navigation System, promote the industrial development of Beidou Satellite Navigation industry. We will give full play to the market subject’s proactivity, carry out market nurturing and demonstration application, encourage new application models and commercial models, step up efforts to carry out major projects, promote the Beidou Satellite Navigation System to be utilized in a large scale.
iii) We will improve policy and regulations and optimize the environment.
We will draft policies that promote Beidou Satellite Navigation System application in important sectors involving national security or national economy. We will promote the utilization of Beidou Satellite Navigation System and its compatible product in areas such as energy (electricity), communication, finance, etc. We will do research and draft management scheme regarding market access and positioning security. We will establish and improve quality detection and certification system and quality surveillance scheme. We will integrate current resources to promote construction of satellite navigation product quality monitoring center, regulate satellite navigation application service operation, and elevate the initiative of backbone enterprises and innovative enterprises. We will strengthen efforts in protecting intellectual property and support eligible enterprises to apply for foreign patents. We will improve financial policies that encourage technological innovation, guide investment and consumption in satellite navigation industry.
iv) We will strengthen standard construction and elevate development standard.
We will accelerate constructing and improve the standard system that supports the healthy development of the satellite navigation industry. We will encourage various parties involving production, study and research to work together to set up a technological standard. We will push forward resource sharing and the military standard becoming widely used in civil areas. We will promote the fusion development of satellite navigation and the Internet of things, and the mobile communication. We will encourage backbone enterprises and research and development institutions to participate in drafting international standards. We will promote Beidou and other satellite navigation systems to be compatible to each other. We will publicize the standards widely; improve information service, certification and detection regarding the standards, supervise the standard being implemented. We will promote the conformity assessment and product certification service development and their international cooperation, so that the Beidou Satellite Navigation System can be utilized globally.
v) We will make more public input and encourage industrial innovation.
We will step up efforts based on the current policy and financial input to organize implementing of the major projects, guide diversified investment, and promote the fast development of the satellite navigation industry. We will add more support to key infrastructure, key technology research and development and demonstration applications. We will elevate the ability to develop critical technology and key products. We will enhance talent pool construction, increase our ability to create, utilize and protect intellectual property. We will support advantaged enterprises to become stronger and bigger. We will encourage the elevation of industrial concentration and competitiveness through building industry association, merges and reorganization.