China outraged by mobile phone firm

The Chinese government has banned electronics firm Matsushita from selling its mobile phones in China for one year, after it made the mistake of referring to Taiwan as an independent country.

Matsushita made the mistake of referring to Taiwan as an independent country in the phones' options menus. China does not officially recognise the existence of Taiwan as an independent country, and claims the renegade state is still part of China.

According to the BBC, Matsushita has since made a grovelling apology, in an effort to appease the Chinese government. Last year it sold a million handsets in China.

Matsushita has admitted the ban will have an impact on profits, which have already been hit by the tech downturn and the Japanese recession.

Japan-based Matsushita also issued a profits warning Wednesday, saying it would make a loss for the first time in six years.