China encourages carmakers to use homegrown rival to GPS system

By BLOOMBERG | 8 August 2016


BEIJING: China is encouraging automakers to install its answer to the US-developed Global Positioning System and advance autonomous driving technology as part of a broader push to upgrade the country's transportation sector.

The government will promote the state-developed Beidou Navigation Satellite System as the standard configuration for vehicle-navigation devices and smartphones, according to a plan issued Friday by the National Development and Reform Commission and Ministry of Transport.

The policy also encourages carmakers to install anti- collision warning systems and develop the technology essential to autonomous driving through the use of big data and cloud computing. Private investment will be encouraged in the construction and operation of intelligent transport systems, according to the plan.

With a shrinking and aging workforce, China is seeking to guide its economy towards more services-oriented and higher-value industries. The manufacturing sector has been under pressure to move away from the labour-intensive model that's earned the country its reputation as the world's workshop.

China has pushed for the adoption of its own satellite positioning system as it aims for global coverage by 2020. The Beidou system was developed to meet China's national security needs and economic development, according to a white paper released by the State Council Information Office in June.

GPS was developed using US Defence Department funding and is maintained by the government.

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