Based on its national conditions, China has independently developed the BDS step by step with constant improvement.

(I) Three-Step Strategy of Development

- The first step is to construct the BDS-1 (also known as BeiDou Navigation Satellite Demonstration System). The project was started in 1994, and the system was completed and put into operation in 2000 with the launching of two Geostationary Earth Orbit (GEO) satellites. With an active-positioning scheme, the system provided users in China with positioning, timing, wide-area differential and short message communication services. The third GEO satellite was launched in 2003, which further enhanced the system's performance.

- The second step is to construct the BDS-2. The project was started in 2004, and by the end of 2012 a total of 14 satellites - 5 GEO satellites, 5 Inclined Geosynchronous Satellite Orbit (IGSO) satellites and 4 Medium Earth Orbit (MEO) satellites - had been launched to finish the space constellation deployment. Based on a technical scheme which was compatible with the BDS-1, the BDS-2 added the passive-positioning scheme, and provided users in the Asia-Pacific region with positioning, velocity measurement, timing, wide-area differential and short message communication services.

- The third step is to construct the BDS. The project was started in 2009 to inherit the technical schemes of both active and passive services. The goal is to provide basic services to the countries along the Belt and Road and in neighboring regions by 2018, and to complete the constellation deployment with the launching of 35 satellites by 2020 to provide services to global users.

(II) Main Composition of the BDS

The BDS is mainly comprised of three segments: space segment, ground segment and user segment.

- The space segment. The BDS space segment is a hybrid navigation constellation consisting of GEO, IGSO and MEO satellites.

- The ground segment. The BDS ground segment consists of various ground stations, including master control stations, time synchronization/uplink stations, and monitoring stations.

- The user segment. The BDS user segment consists of various kinds of BDS basic products, including chips, modules and antennae, as well as terminals, application systems and application services, which are compatible with other systems.

(III) Characteristics of the BDS

The BDS development follows a model of developing regional service capacities, then gradually extending the service globally. This practice has enriched the development models for navigation satellite systems worldwide.

The BDS possesses the following characteristics: First, its space segment is a hybrid constellation consisting of satellites in three kinds of orbits. In comparison with other navigation satellite systems, the BDS operates more satellites in high orbits to offer better anti-shielding capabilities, which is particularly observable in terms of performance in the low-latitude areas. Second, the BDS provides navigation signals of multiple frequencies, and is able to improve service accuracy by using combined multi-frequency signals. Third, the BDS integrates navigation and communication capabilities for the first time, and has five major functions - real-time navigation, rapid positioning, precise timing, location reporting and short message communication services.

(IV) Improvement of BDS Performance

To meet the increasing user demand, BDS technical research and development in the areas of satellites, atomic clocks and signals will be strengthened, and a new generation of navigation, positioning and timing technologies will be explored to improve service performance.

- Providing global services. China will launch new-generation navigation satellites, develop airborne atomic clocks with enhanced performance, further improve the performance and lifetime of satellites, and build more stable and reliable inter-satellite links. It will broadcast additional navigation signals, and enhance the compatibility and interoperability with other navigation satellite systems, so as to provide better services for global users.

- Strengthening service capabilities. China will establish a grounded test and validation bed to accomplish the full coverage of tests and validation for space and ground equipment; continue to build and improve satellite based and ground based augmentation systems to substantially enhance BDS service accuracy and reliability; optimize the technical system of location reporting and short message communication to expand user volume and service coverage.

- Maintaining spatio-temporal reference. The BDT is related to the Coordinated Universal Time, and the time bias information is broadcast in the navigation message. China will push forward the clock bias monitoring with other navigation satellite systems, and improve their compatibility and interoperability. It will develop a BDS-based worldwide location identification system, increase the interoperability between BDS coordinate frame and that of other navigation satellite systems, and constantly refine the reference frame.