China has authorized its first private-sector commercial trial for satellite Internet of Things (IoT) services, granting a two-year permit to Zhejiang Geespace Technology, a commercial space subsidiary of electric vehicle manufacturer Geely. The approval, announced by the Ministry of Industry and Information Technology (MIIT) on Thursday, marks a significant step in Beijing’s efforts to open the country’s satellite communications market to private investment.

Zhejiang Geespace Technology, known as Geespace, aims to provide low-power, wide-coverage connectivity across several sectors including smart transportation, marine fisheries, energy, and water infrastructure. The trial approval makes Geespace the first private Chinese company authorized to conduct a satellite IoT commercial trial, highlighting the government’s push to develop China’s commercial space industry.

Satellite IoT technology facilitates low-speed data transmission via satellite networks, connecting sensors, vehicles, and equipment in remote or hard-to-reach locations without conventional internet access, such as oceans, deserts, and isolated infrastructure. This service differs from high-speed broadband satellite internet offered by constellations like SpaceX’s Starlink or China’s Qianfan system, which focus on faster data transmission.

MIIT indicated in its announcement that satellite IoT complements existing broadband satellite services and that the trial would support expanded private-sector participation in commercial space initiatives. Earlier this year, a state-backed entity, Beijing Guodian High-Tech Technology—supported by China Mobile, the country's largest wireless service provider—received China’s first satellite IoT trial permit.

Established in 2018, Geespace has been actively building its proprietary satellite network, having launched 64 satellites in six missions between 2022 and 2025, completing the first phase of its network rollout. The company’s CEO Wang Yang stated in 2024 that Geespace intends to expand its constellation to surpass 5,600 satellites.

Alongside its domestic developments, Geespace is expanding internationally, having conducted commercial trials with telecommunications operators in more than 20 countries across regions including the Middle East, Africa, Southeast Asia, Central Asia, South Asia, and Latin America. This international expansion positions Geespace in competition with established global satellite IoT providers such as Iridium Communications, a U.S.-listed company headquartered in McLean, Virginia. Iridium operates a 66-satellite constellation serving industries including maritime, aviation, government, and remote infrastructure, with a mature satellite IoT business developed over several decades.