The number of mobile phone users in China hit 431.8 million in July, a government agency, quoted in an InfoWorld Daily report, said.
The nation added 5.43 million new users in July, according to the Ministry of Information Industry.
China's monthly subscriber growth also beat India, another fast growing mobile market. India added 5.28 million new mobile phone users in July, increasing its total to 111.2 million, the report also said.
India also faced a similar situation as China in that mobile services were prompting people to eschew fixed line services. In July, the number of fixed line users in India actually declined by 60,000, the regulator said.
While the number of fixed line users continued to grow in China, mobile phones were more popular. China counted 366.6 million fixed line subscribers by the end of July, up by just over a million from the previous month.
For every 100 people in China, 28 had a fixed line phone connection, while 32.7 subscribed to a mobile phone service, the ministry said.
China's mobile user base was also nearly double that of the US, which stood at an estimated 218.2 million, the report further said.