MarketWatch is reporting that the way has been cleared for the iPhone to reach the largest mobile phone market in the world.

According to Gao Songge, deputy director of China Mobile’s general department, the only thing holding up the deal with Apple was Apple’s insistence on requiring that China Mobile share revenues. Apple dropped those demands on Friday and now the iPhone is set to hit the Chinese market 540 million mobile users.

There is no timetable set for a Chinese release of the iPhone. Yet with the prospect of Apple stores opening in mid-July and the introduction of 3G service in time for the Beijing Olympics, it might not be that far off.