China's State Development and Reform Commission (SDRC) has approved the application of three foreign-invested companies to manufacture mobile phones in China.

Those companies are Shanghai DBTEL, Shanghai Daye and Beijing Hi-Tech Wealth.

SDRC estimates that after beginning the operation, the three will add about 6.8 million new mobile phones each year to China's mobile phone market.

The three companies currently each face different situations in China.

Because of cash losses, DBTEL withdrew from the mainland market before the 2006 Lunar New Year. But analysts say that it may return for 3G now that it has long prepared services for the market.

Beijing Hi-Tech Wealth's representative says that the company launched its own brand of mobile phone as early as the first half of 2005–before it formally received the license.

And Shanghai Daye, an OEM invested in by Taiwan Quanta Computer, has now decided to move its production base to Shanghai and increase its manufacturing output for mobile phones.