China’s Beidou satellite navigation system—one of the country’s top space projects and only the fourth system of its kind currently in development or operation—is projected to achieve global coverage by 2020. This report examines the objectives behind Beijing’s decision to develop the system as an alternative to GPS, its efforts to build an industry around the system, and the effects this might have in security, economic, and diplomatic terms for the United States. The system’s primary purpose is to end China’s military reliance on GPS, although China’s associated industrial policies will likely affect U.S. firms operating in China’s market. Industry professionals assess there are no inherent risks to products such as smartphones receiving data from Beidou.