China's State Council announced on October 12 the abolishment of the administrative examination and approval mechanism - previously under the charge of China's NDRC (National Development and Reform Commission) - on the production of mobile communication system and terminals.

The regulatory mechanism was originally implemented in 2004, which required mobile phone manufacturers to obtain a license from the NDRC in order to produce and sell mobile phones in China. China's MII (Ministry of Information Industry) had issued 49 such licenses in all. Taiwanese manufacturers granted the license include Inventec, BenQ, Dopod, MiTAC, and Quanta.

The abolishment of this mechanism puts an end to the state restrictions on the production and sale of 2G mobile phones in China. However, there are expected to be new regulations regarding 3G mobile phones instead, according to industry speculation.