The explanation that beidou 1 was a glorified, super expensive satellite pager, with navigation functionality as an afterthought does not hold water. This "explanation" came much later than the commencement of beidou 1 project.
The reason Beidou I needs two way transmission is they wanted add pager functionality to its navigation functionality. The party wants more control has nothing to do with Beidou I's two way transmission mechanism. When Beidou I was developed, it's mostly used by military. The party doesn't need "more control" there.
China already had military digital satellite coms working by late nineties. For them, it was of even lesser utility.
My point is that many things in China may be explained by the party wanting more control, but two way transmission of beidou I is not one of them.
The idea was realisedly lunatical even back then, but party boffins really though that reality and laws of physics will yield to party's mandate.