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China Tech & Business Decoded

vol.048:China's Tech Revolution:The Rise of Shanzhai Phones

19 Nov 2025

Description

The text is an installment of an IT journalist's newsletter explaining the crucial role of "Shanzhai" (山寨機), or illegally manufactured, often copycat, mobile phones, in the development of China's modern technology industry. The author details how these no-brand phones, mass-produced in Shenzhen during the 2000s, were illegal but provided advanced features like dual SIM support and FM tuners at low prices, greatly increasing mobile phone penetration in China and developing countries. The piece argues that while often dismissed as illegal or poor quality, Shanzhai fostered an environment of rapid innovation and speed-to-market that laid the groundwork for today's tech giants like Xiaomi, OPPO, and vivo. Ultimately, the text presents the rise, government control, and eventual legitimization of Shanzhai as the prototypical growth pattern for new Chinese industries, where grey-market operations address societal needs before being regulated and integrated by the government.

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