According to ccidnet.com, South Korean telecom operator SK Telecom will sell its mobile phone manufacturing business in China and is now negotiating with Chinese mobile phone manufacturers over the best way to proceed.

The report says that the sale is likely to be completed before the end of this year. However, there is yet no comment from the SK Telecom side.

SK Telecom set up a joint venture company with Xinjiang Tiandi Group in March 2004 to manufacture SK brand CDMA mobile phones. However, the company did not formally enter Chinese mobile phone market until April 2005 when it launched two types of C-net mobile phones. A representative from a Chinese mobile phone manufacturing factory was cited in local media as saying that SK's mobile phone business had poor operations in China.

At this time, it is not known which company is negotiating with SK on the acquisition.