China to force liberalisation upon its handset market

China will soon be enforcing a set of licensing rules that will liberalise the manufacture and sale of mobile phone handsets in the country.

In October last year the Chinese State decided to remove its licensing control of the industry. However, due to lack of enforcement, the market has yet to become more liberalised.

It was decided by the Chinese State last week to implement a set of rules to help the liberalisation process.

The new rules will mean that domestic and international handset manufacturers and vendors will only have to apply for permission to introduce handsets into the Chinese market, rather than an operating license. Permission will be granted to all manufacturers and vendors subject to quality control tests and a guarantee from the vendors that they will offer after-sales services.

This move is expected to make the handset market in China more competitive, because many vendors who currently sell handsets on the black market will now be allowed to distribute their handsets legally.