According to a report from China's Ministry of Information Industry, China produced about 500 million mobile phones, or more than 40 percent of all phones made worldwide in 2007. The figure marks a 41 percent increase in production over last year. About 80 percent of the phones, or 400 million, were exported. According to the report 38 companies manufacture mobile phones in China. That said, Chinese manufacturers lost about 2 percent market penetration domestically in 2007.

For more on China's growing mobile manufacturing prowess:
- read this article from PC World