China's Phone Makers Gird for Fight

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Sunday, May 28, 2000, updated at 15:21(GMT+8)

Business

China's Phone Makers Gird for Fight

China's mobile phone makers are having a tough time with foreign phone producers controlling 96 percent of the Chinese market.

But Chinese producers are reluctant to give up on the rapidly growing and potentially huge domestic market.

Official statistics indicate China had 43 million cellular phone users last year, with 20 million to 30 million more expected to join them this year.

The telecom authority is gearing up to strengthen its weak cellular phone making industry. The Ministry of Information Industry last year approved the applications of nine companies eager to produce cellular phones.

The firms included manufacturers of electronic household appliances and suppliers of telecommunications equipment.

The government reportedly wants domestic producers to win at least 10 percent of the market this year and push for 20 percent share in 2001.

Domestic producers seem excited, but hesitant about pursuing a total sales of 5 billion to 7.5 billion yuan (US$602 million to US$903 million).


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	China's mobile phone makers are having a tough time with foreign phone producers controlling 96 percent of the Chinese market.




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