NEC has run up against the opposition of the central government to its US$225 million expansion plan, China Business News reports. The Development and Reform Commission called a halt to the plan due to oversupply and disorder within the mobile phone market; NEC's original plan for the project was to increase its mobile phone production capacity three times, as well as to develop an R&D center in Wuhan. NEC phones had a 1.5% market share in 2004, and 2% in 2005. The expansion would have enabled NEC to prepare for the coming 3G market; although the increased capacity was based around 2G and 2.5G phones, it would be used in the future for 3G production. NEC said that it would continue to apply for the commission's approval. Some Analysts believe that if it had applied for permission to add new 3G capacity, NEC's proposal would have passed without incident.Link: http://dycj.ynet.com/article.jsp?oid=8066681