The Ministry of Information Industry has recently released estimates that China's nationally-made cell phone production will reach 170 million in 2004, while the market demand will not exceed 80 million.

Facing such a large gap between demand and supply, the Ministry has expressed strong determination to exert strict control over cell phone investment and to begin macro market supervision. At the same time, officials at the Ministry have announced that imports of cell phones from abroad will not be limited, although China will continuously encourage more of its own cell phone manufacturers to increase the exports of their products.

In the past years, China's investment in the cell phone market has greatly out-run that of other fields. As a result, the mobile phone market has always faced a serious problem of surplus supply. Now the government concern has put this issue on the agenda, and a special meeting regarding adjustment of the mobile phone market is expected to be held in April to promote the healthy development of the market.