China-US Trade War: China's Beidou navigation system ready to go global

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02:46

The US ban on selling chips and other key components to Huawei has raised concerns among other Chinese tech companies. But CGTN's Wu Lei talked with two major players in the Beidou Navigation System, who say they're not worried by the move.

Comnav Technology is one of the key suppliers of high precision modules and receivers for the Beidou Navigation system. Its terminal products have been sold to over 100 countries including the US. The US government put Comnav's products on its list of additional tariffs last year, but the company said the impact has been limited.

YIN QING, VICE GENERAL MANAGER COMNAV TECHNOLOGY LTD. "Regarding the trade war, for such kind of products, the tariff already imposed on the first round, but for us we don't have very big sales in the US right now, so we are not affected a lot."

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 7 years ago at a cost of about 10 thousand US dollars.

WU LEI SHANGHAI "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 2000 USD 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. From chip sets to receivers, thousands of companies have provided products and solutions in the sector.

SHEN JUN, VICE PRESIDENT & CHIEF SCIENTIST BEIJING UNISTRONG SCIENCE & TECHNOLOGY CO. LTD. "Once a senior scientist says the core technology cannot be bought, we have to develop our own key skills and technologies. I think this is the main lesson that can be learnt from Beidou's independent development."

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

WANG JIANYU, DIRECTOR CHINESE ACADEMY OF SCIENCES SHANGHAI BRANCH "In the short term, a ban may restrict you, but in the long run, it helps you to reshape your technology and business model."

Thanks to these companies' core technology breakthroughs and complete industrial chains, more customers across the world will benefit from Beidou's reliable positioning and navigation services. WL, CGTN, SH.