Beidou now offered location, timing and navigation data to China and surrounding areas announced the project’s spokesman Ran Cheng.
China has been working on the system since 2000 to provide an alternative to the US government-run Global Positioning System (GPS).
The move should make China’s military less dependent on foreign technology.
A launch earlier this month delivered the tenth of Beidou’s satellites into orbit.
Beijing plans to send a further six satellites into space by 2012 to extend the system to most parts of Asia, and then expand the network to a total of 35 satellites offering global coverage by 2020.
They told China Daily that the system could create a 400 billion yuan ($63.2bn, £40.4bn) market in related applications for the automotive, telecommunications, fishing and other industries by 2020.