Analysys International said in a news release that recent testing of a relatively immature 3G technology in Shanghai was a signal that one of the world's key wireless markets is adopting standards that don't match those favored by overseas equipment producers.

The Shanghai trials run by ZTE and China Telecom (NYSE:CHA) were based on TD-SCDMA technology rather than the WCDMA and CDMA2000 technologies used by many international manufacturers. The move theoretically gives Chinese manufacturers a leg up on the competition.

Although TD-SCDMA is considered less mature, Analysys said the move puts pressure on the industry to come to an agreement with Beijing on negotiations over all 3G intellectual-property rights in China.