China's State Council has recently announced plans to cancel and make adjustments on 186 items subject to administrative approval, including the approval mechanism for mobile phone production implemented by the National Reform and Development Commission in 2004.

Nine other telecom items whose administrative approval shall be canceled along with that of mobile phone production are communications project construction enterprise qualification certification; communications inspection and designing enterprise qualification certification; communications and electronic investment project initiation; review of the communications and electronic computation and measurement tools; approval on the intermission of communications connection; review on overseas listing of domestic telecom enterprises; registry mechanism for international telephone balance prices; review on developing wireless project equipment; and the establishment and authorization of communications and electronics quality control organization.

In July 2004, the State Council issued a document in which it said that projects regarding the production of mobile communications system and terminal shall be reviewed and approved by the State and in February 2005, NRDC formally initiated the approval mechanism for mobile phone production.

Statistics from the Ministry of Information Industry show since February 2005, 41 new mobile phone manufacturers have been approved in China, including 30 domestic companies and 11 foreign investment companies.