(keitai-l) Japan firm recalls China phones in Taiwan faux pas

From: Renfield Kuroda <Renfield.Kuroda_at_morganstanley.com>
Date: 08/14/01
Message-ID: <3B792B85.2480A23D@morganstanley.com>
    8/14/01 8:45 PM

   SHANGHAI, Aug 14 (Reuters) - Japan's Matsushita Communication
Industrial <6781.T> is recalling mobile phones in China
   because their directory search functions list Beijing's arch-rival
Taiwan as "ROC", the Republic of China.

   The Japanese handset maker said it was calling back four Panasonic
models -- GD50, GD90, GD92 and GD93 -- made by its
   Beijing joint venture to change the software settings.

   Beijing views Taiwan as a breakaway province and not a separate
country.

   "The 'Country' column for searching country or area codes should read
'Menu' and the English abbreviation for the area code '886'
   should read 'TW'," Bejing Matsushita Communication Equipment Co said
in a statement seen by Reuters on Tuesday.

   "We express regret to Matsushita handset users," the firm said,
adding the mislabelling was due to "an error in software wording".

   Matsushita Communication and its affiliate own 50 percent of the
joint venture.

   "We have started calling back all the models across China to change
the software setting, and we will also change our inventories
   and future production," a company official said. He declined to say
how many handsets the recall would affect or give an estimate
   for losses.

   China and Taiwan have been bitter political rivals since they split
in 1949 after civil war. Beijing has threatened to attack if Taipei
   declares independence or drags its feet on unification. ((Shanghai
Newsroom: (8621) 6355-4010. Fax (8621) 6355-5015. E-mail:
   reutersh@uninet.com.cn))

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Received on Tue Aug 14 16:34:54 2001