China's Beidou Navigation System ready to go global

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The U.S. ban on selling chips and other key components to Huawei has raised concerns among other Chinese tech companies. But I talked with two major players in the Beidou Navigation System who say they are not worried by the move.

Comnav Technology is one of the key suppliers of high precision modules and receivers for the Beidou Navigation System.

Comnav's terminal products have been sold to over 100 countries including the U.S. /CGTN Photo

The U.S. government put Comnav's products on its list of additional tariffs last year, but the company said the impact has been limited.

Yin Qing, Comnav Technology's Vice General manager told CGTN that because they don't have very big sales in the U.S. right now, tariffs didn't really affect them.

China started to build its Beidou Navigation System in the late 1990s. High tech companies used to rely on imported components.

This OEM board, or module, for example, could only be imported seven years ago at the cost of about 10,000 U.S. dollars. /CGTN Photo

But after years of research, Chinese high tech companies have developed the core technology and completed the supply chain. Now, this module only costs around 2,000 U.S. dollars with all the same functions. These companies say the key for sustainable growth is building a complete industrial chain.

According to official data, 80 million chips have been sold for products using China's BeiDou Navigation System. /CGTN Photo

From chipsets to receivers, thousands of companies have provided products and solutions in the sector. Shen Jun, Vice President of Beijing Unistrong Science and Technology Company told CGTN that once a senior scientist says the core technology cannot be bought, they have to develop their own key skills and technologies. He thinks this is the main lesson that can be learned from Beidou's independent development.

Some Chinese tech companies may have felt increasing uncertainty due to the ongoing U.S.-China trade war, but experts say that where there is danger, there might be opportunities as well.

Experts say the trade war might be a double-edged sword for Chinese tech companies. /CGTN Photo

Wang Jianyu, the director of Chinese Academy of Sciences Shanghai Branch said in the short term, a ban may restrict you, but in the long run, it helps you to reshape your technology and business model.