This system is different from the European WCDMA standard or the American CDMA 2000 technology.

Yet this technology could prove a significant threat, as China is set to surpass the US this year as the world’s biggest mobile phone market.

Datand recently struck a deal to test the new technology with equipment from the French electronics firm Thales.

Siemens has thus far invested more than $100 million to develop the standard, while Datang has spent tens of millions of dollars.