The China-Brazil Earth Resource Satellite-04 (CBERS-04) was sent into orbit on December 7 last year.
Tests on the satellite's application and operational systems during orbit were found to meet the general requirements of the design, China's State Administration of Science, Technology and Industry for National Defence said.
The satellite was developed by China's Academy of Space Technology and Brazil's National Institution of Space Research.
It can cover terrain the size of China in 26 days and provide images of medium solution, state-run Xinhua news agency reported.
China and Brazil signed the satellite cooperation agreement in 1988. The two countries have sent three earth resource satellites into orbit in 1999, 2003 and 2007, respectively.
Earth observation satellites are satellites specifically designed for Earth observation from orbit, similar to spy satellites but intended for non-military uses.