BEIJING, Aug. 20 (Xinhua) -- The Ministry of Industry and Information Technology has approved a two-year commercial trial of satellite Internet of Things (IoT) services by Zhejiang Geespace Technology Co., Ltd., marking the latest step in opening the sector to private companies.

Visitors walk into the venue of the 2025 China 5G + Industrial Internet Conference in Wuhan, central China's Hubei Province, Nov. 21, 2025. (Photo: Xinhua)

During the two-year trial, Geespace will provide wide-area, low-power and reliable IoT connectivity services, enabling round-the-clock smart data collection and remote interaction in sectors such as smart transportation, marine fisheries, energy and water conservancy, the ministry said on Thursday.

Satellite IoT uses satellite networks to connect devices and vehicles such as data terminals, wearable devices, cars, ships and aircraft, particularly in areas where terrestrial networks have limited coverage.

The latest approval comes as China seeks to expand the commercial applications of satellite communications and develop its commercial space industry.

The country launched commercial trials of satellite IoT services in November 2025. In May of this year, Beijing Guodian Gaoke Technology Co., Ltd. received approval to conduct a two-year commercial trial.

Commercial trials are expected to help satellite IoT services achieve economies of scale and promote more coordinated industry development, the ministry said.

For years, basic telecommunications licences in the satellite communication sector have largely been held by major state-owned companies, while private firms have mainly operated in satellite manufacturing, launch services and downstream applications.

A policy document issued by China's State Council in November 2025 called for equal treatment of private investment projects in commercial spaceflight frequency licensing and launch approvals.

China will further optimize market access for satellite communications and strengthen regulation and security across the industry chain to promote the sector's development, according to the ministry.