The U.S.-based Hewlett-Packard (HP), a world-leading information technology supplier, announced on Friday it had secured a licence from Chinese industry regulators to make and sell mobile phones in China, China Daily reports on Saturday.

In China, the world's largest cell phone market for subscribers, a company is not allowed to make and sell mobile phones without a licence.

HP will now start selling smart devices, combining functions of mobile phones and its popular pocket PC, iPAQ.

Isaiah Cheung, director of the mobile business division at the Personal System Group of HP's China operations, said the U.S. firm was ready to "capitalize on the mobile explosion" in China.

China now has more than 380 million mobile phone subscribers and "mobile phone-led offices" are becoming increasingly popular in the country.

HP will sell a smartphone model in China, which could enable users to receive and read e-mails from their corporate servers and use Microsoft's office automation software.

The model is also the world's first smartphone with an in-built GPS (global positioning system).

"We are seeking partnerships with mobile operators (to promote our mobile phone business), " Cheung said, adding, HP will focus on high-end users, in particular business executives.

Source: China Daily