China Eases Rules on Mobile Phone Production

The mainland is moving toward canceling a licensing system for cell-phone production that has been in effect since 2004

China's State Council has abolished some 186 administrative examination and approval items covering mobile communication system and terminals.

The move indicates that the country will formally cancel the mobile phone production license examination and approval system implemented since 2004.

Apart from mobile phone production, the State Council also abolished the other nine telecom administrative examination and approval items, including qualification certification of communications construction enterprises, qualification certification of communication exploitation design enterprises, examination and approval of communications and electronic investment projects, and so on.

Previously, China had required that manufacturers should procure production licenses from the Ministry of Information Industry (MII) if they want to turn out mobile phones.

MII had issued 49 mobile phone production licenses in total to 38 enterprises from 1998 to 2005, including 30 GSM licenses and 19 CDMA licenses.

After the system reform in 2005, a great number of manufacturers turned to mobile phone production.

Accordingly, the mobile phone production capacity in China is also on the rapid rise. Statistics from MII show that the total output in the Chinese market from January to July has reached 300 million units.

However, some observers expressed alarm that after the abolishment of mobile phone production examination and approval system, more and more mobile phones will flood the market.

But officials said although the mobile phone production examination and approval system will be abolished, MII's network access admission system still can maintain the order of the mobile phone manufacturing industry.

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