The name is absent

Local firms started supplying China’s domestic handset market in 1998 when Kejian
manufactured the first GSM handset with a domestic brand. However, the development of the
local manufacturers had been very slow prior to 2002. A few large international companies
dominated China’s internal market, especially in the urban areas. The market share of domestic
brands in China’s domestic market was only 5% in 1999 and 10.7% in 2000.

Chinese domestic companies lagged in all technological areas of handset manufacturing
and design. The Chinese government began to support domestic producers officially after 1999.
In January 1999, “Several Issues on Speeding up the Development of Chinese Mobile
Communications Industry” was issued by the State Council (Tan, 2002). This document
stipulated a list of measures to support local mobile communications equipment providers,
including assignment of research grants for R&D, preferred interest rates, discounted tax rates,
restriction of further foreign investment in the handset manufacturing sector, and other indirect
measures, such as local governments’ provision of free land in high-tech industrial parks for
handset producers.

Table 3. China’s Domestic Handset Manufacturers (2003)

Source: summarized by the authors

China's Mobile Handsets FINAL DRAFT 2006.sph ERSA2006 Greece

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