China races to rival the U.S. with its own GPS system — but one analyst says it won’t overtake the U.S. yet

China is decided to turn out to be a critical participant within the “highly lucrative” satellite navigation market, because it seeks to compete with the U.S. government-owned Global Positioning System (GPS), an analyst said Monday.

However China’s homegrown Beidou plan just will not be going to overtake the GPS plan for now, said Craig Singleton, adjunct fellow on the hawkish Basis for Defense of Democracies.

“China has marked a critical step in its hasten to prolong market half on this highly lucrative sector,” Singleton educated CNBC’s “Grunt Field Asia.”

“The completion of the plan additionally reaffirms China’s location as an global energy. It represents a critical declaration about its technical independence from the West, which carries wide-ranging geopolitical implications,” said Singleton.

Flags of the U.S. and China cruise along Pennsylvania Avenue in Washington, D.C., on Jan. 17, 2011.

Andrew Harrer | Bloomberg | Getty Photographs

Better than 120 international locations — in conjunction with Pakistan and Thailand — are the use of China’s Beidou plan for applications comparable to monitoring traffic at ports or guiding rescue operations, the analyst said.

And Beijing is reckoning on its big Belt and Motorway Initiative to “convince” extra international locations to make use of Beidou, he added.

The Beidou plan used to be performed in June final 365 days. Chinese language relate media Xinhua said final week that the value of Beidou-linked industries will exceed 1 trillion yuan ($157.1 billion) by 2025.

‘Bifurcated world’

Singleton said Beidou’s completion has rekindled concerns among some within the West about the privateness and security of Chinese language know-how. He explained that some of us distress Beijing could well use its know-how to trace folks, comparable to dissidents or democracy activists.

Such concerns devour attain as U.S.-China opponents heats up within the know-how space. The U.S. below frail President Donald Trump launched export controls on a lot of Chinese language tech companies, in conjunction with telecommunications gear maker Huawei and top chipmaker SMIC, or Semiconductor Manufacturing World Corp.

President Joe Biden has saved many Trump-era restrictions on Chinese language companies. Biden is soliciting for to take investments in U.S. compare and pattern in direct that his country can fabricate tech capabilities to compete with China.

Learn extra about China from CNBC Expert

For now, China’s Beidou plan would not appear to threaten the dominance of GPS, said Singleton.

“At this level, it would not look as if Beidou is going to conquer GPS, nonetheless it absolutely’s absolutely conceivable that we are going to look a bifurcated plan, bifurcated world between GPS and Beidou within the damage,” the analyst said.

— CNBC’s Arjun Kharpal contributed to this document.

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