In 2007, the Chinese government realized that China did not have a competitive domestic brand of mobile phone in spite of its position as the largest single market of mobile phones in the world. Hence, the Chinese government withdrew the license system in October 2007 to speed up the development of the industry. It allowed all mobile phones that passed the quality test of the Ministry of Industry and Information Technology to be sold legally on the market. This policy also encouraged the mobile phone manufacturers that had operated on the black market for a long time to come out into the light one after another. The ‘Gray Market’ mobile phones are mobile phones that are either copied from the product of multinational leading manufacturers without....