Half a Billion Chinese Handsets

China's mobile phone manufacturing production is set to exceed 500 handsets this year according to a report from the country's National Development and Reform Commission. The growth comes from relaxed licensing of new manufacturers, leading to some new 40 companies joining the marketplace.

"Judging from developments in recent years, mobile phone production capacity has increased rapidly and the investment risk must not be overlooked," the National Development and Reform Commission said in a report on its website.

"As the capacity of domestic enterprises rises rapidly, market competition will become more intense and the capacity of the entire industry to earn profits will fall."

Last year, the country made some 300 million handsets, and the subscriber base rose to 334 million, with growth expected to top 400 million this year."

Posted to the site on 21st February 2005