A total of ten mobile phone makers have applied for domestic manufacturing and sales licenses as the Chinese government is beginning to adopt a more liberal licensing policy in January 2005. These companies include Chinese makers such as Gionee, Skyworth and Huawei, as well as Taiwanese player BenQ. Their applications have been submitted to authorities concerned, including Ministry of Information Industry, and if all goes to plan, licenses are expected to be issued by mid 2005. 

 

Some mobile phone makers will be able to further tap into the vast market after securing licenses from the Chinese government. However, according to some handset makers, the impact of the policy changeover will likely be limited given that the Chinese market is increasingly saturated with various mobile phone brands and the competition is highly heated.  

 

By October 2004, only some 30 handset companies had licenses in China. Others setting sights on the market often forged a joint venture with those that have them already or pay fees to borrow the licenses.