Chang'e-1, China's first lunar probe, impacted the moon at 4:13 p.m. Beijing Time (0813 GMT) Sunday, said sources with the State Administration of Science, Technology and Industry for National Defense.
The satellite ended its 16-month mission Sunday when it hit the lunar surface at 1.50 degrees south latitude and 52.36 degrees east longitude.
China landed its first satellite on Moon, as the Communist nation braces to compete in space technology with countries like US, Russia and India. It represents the first step in the Chinese ambition to land robotic explorers on the moon before 2020.
Chang'e-1 began to reduce its speed under remote control by two observation and control stations in east China's Qingdao and northwest China's Kashi.
This was the first phase of China's three-stage moon mission, which will lead to a landing and launch of a rover vehicle around 2012, the official Xinhua news agency reported.
Chang'e-1 was launched into space on October 24, 2007 and sent the first full map of the moon's surface back to China one month later.
A dozen performance tests were carried out while Chang'e-1 was in orbit to find out its orbit adjustment capability. "Chang'e" is named after a legendary Chinese moon goddess.
China is the third nation, after the U.S. and Russia, to launch people into space after Yang Liwei was put into orbit aboard the spaceship Shenzhou-5 on October 15, 2003. Another three astronauts were sent into space in Shenzhou-7 and carried out the country's first space walk in September of last year.
China to launch space module in 2010
China will launch a space module next year and carry out the nation's first space docking in 2011 as a step towards its goal of building a space station, state media said on Sunday.
The Tiangong-1, or "Heavenly Palace-1" is scheduled for launch in late 2010 and will dock with a Shenzhou-8 spacecraft early the following year, Xinhua news agency said, citing officials with China's space programme.
"The module, named Tiangong-1, is designed to provide a 'safe room' for Chinese astronauts to live and conduct scientific research in zero gravity," the report said.
"Weighing about 8.5 tonnes, Tiangong-1 is able to perform long-term unattended operation, which will be an essential step toward building a space station."
Space programme officials have previously said that China is expected to place in orbit several modules like the Tiangong and link them up to form a semi-permanent space platform.
It was not immediately clear if the Tiangong-1 would eventually serve as China's first manned space station, or whether it would only be a platform to test docking and space station technology.
The planned 2011 space docking would be remotely carried out by scientists on the ground and would not involve astronauts. China became the third nation to put a man in space when Yang Liwei piloted the one-man Shenzhou-5 space mission in 2003.
Last September, the Shenzhou-7, piloted by three "taikonauts" or astronauts, carried out China's first space walk.
Several prototypes of the Tiangong would be built this year, while upgrades to the carrier rocket that will launch the module into space would also be carried out, the report said.
Following the Shenzhou-8 flight, China also hopes to begin the mass production of Shenzhou spacecraft which will be used to transport astronauts to the space station.
The International Space Station commenced with the launch into orbit of the first station element, a Russian-built module on November 20, 1998. It orbits some 350 kilometres (190 miles) above the earth's surface with a permanent crew of three astronauts who remain aboard for stays lasting several months.
