Nokia's latest product–the 9500 Communicator–will not be coming to China as it supports the 802.11b wireless standard, thus become another casualty of China's new Wi-Fi encryption standard.

"The Chinese regulation was only announced in December, by which time our product was already into its being. In that light, it will be very difficult for us to meet the June 1 deadline," a Nokia representative said.

The problem is a setback for Nokia's Enterprise Systems group, which was targeting businesses for the new Communicator handset, but will now have to settle for corporations outside China. The business unit was formed last October as part of a companywide effort to sharpen its focus on the lucrative enterprise market, which Nokia believes to be still in its infancy and holds "significant" revenue potential.