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It’s a small blurb in a Reuters article mainly about BlackBerries in China, but here’s the important part for us:

"China Telecom aims to sell BlackBerry handsets and Palm smartphones in China by early next year, as it tries to gain share from its two larger mobile telecom rivals, a source familiar with the situation said on Monday."

China Telecom is China’s smallest major cellular network (though the largest Chinese CDMA network), trailing behind rivals China Unicom and China Mobile. China Unicom recently launch the iPhone in China, though its high price has apparently limited the iPhone’s success. China Mobile, on the other hand, will be launching Dell’s new smartphone offering, the Android-running Dell Mini 3i.

This also is not the first time we've heard of China Telecom pursuing Palm. It was reported back in August that the carrier was in talks to carry Palm devices.