Matsushita Electric Industrial and Toshiba may exit the China CRT TV market amid rising competition, according to sources.

The sources went on to add that they expect Matsushita and Toshiba to suspend CRT TV production in Japan in the third quarter and at the end of this year, respectively. In the China market, Japan-based CRT TV makers, including Sony, Matsushita, Toshiba and Hitachi, have slashed prices for their 29-inch TVs in China to under 2,000 yuan (about US$242) recently, down from nearly 3,000 yuan (about US$362).

The aggressive price-cutting shows the makers' intention to withdraw from the China market, the sources pointed out. A source from Matsushita, although denying the rumor, refused to comment on the speculation that Japan-based makers will quit the China CRT TV market. The source indicated that China-based brands are on equal footing with Japanese brands in terms of CRT TV technology and cost control in the China market. In addition, Japanese companies are switching to produce FPD (flat-panel display) TVs, the source added.