China has approved its first private-sector commercial trial for satellite Internet of Things (IoT) services, granting a permit to Zhejiang Geespace Technology as part of what are being described as broader efforts to open the country’s satellite communications market to private capital.

Indeed in its approval notice, the country’s Ministry of Industry and Information Technology (MIIT) highlighted satellite IoT as an important complement to broadband satellite services, noting that the trial would help pave the way for further private-sector participation in China’s commercial space development.

MIIT has granted Geespace, the commercial space subsidiary of electric vehicle giant Geely, a two-year trial period.

Geespace is a global satellite communications service provider dedicated to the construction and operation of a low Earth orbit (LEO) communication constellation. It independently designs, develops, deploys, and operates the global LEO satellite Internet of Things (IoT) constellation Geesatcom.

Geespace will provide low-power, wide-coverage connectivity across sectors including smart transport, marine fisheries, energy, and water infrastructure.

Geespace is now the first private Chinese company to secure approval for a satellite IoT commercial trial, though the South China Morning Post notes that in May, MIIT issued the country’s first satellite IoT trial permit to Beijing Guodian High-Tech Technology, an entity backed by state-owned China Mobile, the nation’s largest wireless carrier.

Founded in 2018, Geespace has launched around 64 satellites. Some reports suggest its long-term plans are to deploy a constellation exceeding 5,600 satellites.

Geespace is also pushing into international markets, saying that it has had trials with telecoms operators in more than 20 countries across the Middle East, Africa, Southeast Asia, Central Asia, South Asia and Latin America.