In response to local media reports that NEC will withdraw from the Chinese mobile phone market, a spokesperson of NEC emphasizes that NEC will not leave China.

Instead, NEC says it only plans to stop developing 2G and 2.3G mobile phones in China.

Akiko Shikimori, a spokesperson from NEC, says that NEC will stop developing more new 2.5G mobile phones and is reshuffling its business in China.

As China's 3G licenses are still pending, analysts say that the prospects for NEC to develop 3G mobile phones is not so certain now.