Essay from the year 2003 in the subject Business economics - Operations Research, grade: 2 (good), Rovaniemi University of Applied Sciences (Swedish School, Institute of Economics, Vaasa), course: Business in East and Southeast Asia, language: English, abstract: In China a tough competition in the mobile-phone business has evolved between western-like global operating companies and domestic chinese telecommunication companies. The battle is about market shares in the rapidly growing market of mobile phones in the PRC. Mobile phones, or in chinese Shouji1, become increasingly popula r, especially in the so-called boom-areas where mobile phones have become a status symbol like in other western countries so that people own 2 or 3 or even more mobiles whereas in rural areas the development of mobile communication networks still goes ofte n against zero. The purpose of this essay is to show up some facts about the PRCs telecommunication market, to introduce the reader to the most important foreign and domestic companies doing business in this market, to show up the current situation of both types of companies in China, and to analyse some reasons for the recent market development. Claas Bartels, Holger Wenk and Michael Mahlich are alltogether students at the Business Faculty of the University of Applied Sciences and Arts in Hildesheim, Germany, studying the field Business and Administration with specialisation in Controlling, Finance, Accounting, Taxation, IT and International Business. 1 A mixture of the chinese characters for hand and device