The Asian country is also deploying its own satellite-navigation system known as BeiDou, or Compass.

BBC: Rocket launches Chinese space lab

Mr. Ran said Beidou was accurate to within 25 meters and would reduce that to 10 meters by the end of next year.

WSJ: Beijing Launches GPS Rival

In 2007, China launched the first satellite of its second-generation system, called Beidou-2, which is thought to use cheaper terminals and, unlike its predecessor, doesn't require a ground station.

WSJ: Beijing Launches GPS Rival

Here's a little background: Little Chilli is Beidou's fairly new brand that attempts to follow Xiaomi's online retail model, but without supplying a heavily customized version of Android like MIUI.

ENGADGET: Little Chilli LA-M1 outshines other QRD-based quad-core budget phones, we go hands-on

Regardless, Beidou could be well on its way to become the new Xiaomi (sans the software part), though only time can tell whether it has the reliability and after-sale service to prove it.

ENGADGET: Little Chilli LA-M1 outshines other QRD-based quad-core budget phones, we go hands-on

Mr. Ran said Beidou is already being used by more than 100, 000 clients in China and has been used to help track government vehicles in the southern province of Guangdong, and to assist disaster-relief work after an earthquake in the western province of Sichuan in 2008.

WSJ: Beijing Launches GPS Rival