BenQ will start moving most of its 3G model production to China at the end of 2006, DigiTimes reported. BenQ has production bases in China's Suzhou and Shanghai, said the paper, quoted YS Cheng, the company’s director. In the past, the Suzhou base catered to the local Chinese market, and the Shanghai base produced handsets for export, Cheng explained. But now no distinctions are made between the two plants. Cheng said in order to strengthen competitiveness, BenQ will increase production at markets where demand is strong. However, he maintained that the facilities in Europe will not be completely shut down, because they are still needed to meet huge demand in Europe. Cheng said 3G and a metallic looks will be marketing themes for BenQ handsets in the second half of 2006.