Skyworth Digital Holdings Ltd., a Shenzhen-based television maker, had obtained a National Development and Reform Commission (NDRC) license to manufacture mobile handsets, the NDRC said in a statement.

"It means that from today we can finally sell handsets with our own brand — Skyworth," said Ge Wengao, a marketing official of Skyworth.

NDRC also said it had granted three other companies, Inventec Appliances Co. Ltd., Acer Communications & Multimedia Technology Co. Ltd. and Shenzhen Gionee Communication Equipment Co. Ltd., production licenses.

The four new licenses grant a combined annual production capacity of 14 million units, the NDRC statement added.

"The constant enlargement of handset production capacity has brought more risks in investment and many companies are already seeing losses. New applicants should make cautious decisions after serious market analysis," the NDRC warned.

Most Chinese handset makers including Skyworth produced mobile handsets with other companies' brands by leasing licenses from their rivals over the past six years because the Ministry of Information Industry (MII) had very tight controls over licenses to protect domestic development.

In February, the NDRC said China's mobile phone equipment makers would need only apply to the NDRC for production licenses, relegating the MII to an advisory role. "We are expecting to sell around 1 million handsets this year with around 20 new models," said Le Yesheng, Skyworth's manager of handset business.

(Shenzhen Daily May 30, 2005)