Samsung halted mobile phone production in China, as it looks to improve efficiency and keep pace with strong competition by local rivals.

The company said in a statement the decision had been difficult, and it would relocate production equipment to other global manufacturing sites based on market needs.

The move comes after Samsung closed its Tianjin plant a year ago, followed by shutting down its facility in Huizhou six months later due to pressure from tough competition in the Chinese market.

The smartphone vendor has recently been focused on moving its phone production to countries such as India and Vietnam.

Samsung has lost market share in China to domestic rivals such as Huawei and Xiaomi. The company had just 1 per cent of the market in the first quarter of the year, compared to around 15 per cent in the middle of 2013, data by Counterpoint showed.

Along with Samsung, major rival Apple asked its suppliers in June to begin planning for a shift of production into South East Asia, as the company became increasingly concerned about the risks of relying on manufacturing in China.