The Tiantong-01 satellite was launched at 00:22 am local time at southwestern China's Xichang Satellite Launch Centre with the Long March-3B carrier rocket.
It will establish a mobile network with ground facilities, providing services for China, the Middle East, Africa and other areas, state-run Xinhua news agency reported.
It is the first satellite of China's home-made satellite mobile telecom system, and a key part of the country's space information infrastructure.
More geostationary satellites will be sent into orbit for the system.
Tiantong-01 was designed by China Academy of Space Technology and its ground service will be operated by China Telecom.