MarketWatch reports that negotiations between Apple and China Mobile, that nation’s largest carrier, are making progress toward an iPhone 3G launch in the country with over 600 million possible subscribers.

While China Mobile’s CEO, Wang Jianzhou, was legally unable to speak about the contents of the talks, he did say they are still interested in getting the iPhone on their network.

“We have disclosure agreements with Apple, so I can’t disclose many details. All I can say is that China is still interested in getting the iPhone into China Mobile markets,” he said.

A victory here (in addition to getting the phones into Wal-Mart; see previous report) could mean a huge gain in market share for the iPhone and increased widespread acceptance of the device. It’s in Apple’s best interests to play the waiting game and get into this huge market.

Talks are ongoing and rumors are that some type of deal will be reached in the next few weeks.