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China Briefings

Reports on China issued by Samsung Economic Research Institute

Analysis of China’s Shanzhai Electronic Products

Analysis of China’s Shanzhai Electronic Products

Samsung Economic Research Institute Beijing Office

Aug. 19, 2010

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1.Introduction

□ Shanzhai electronic products, or knockoff electronic goods, have spread all over the world from China.

- China's shanzhai mobile phones are being sold to all over the world, wielding substantial influence on the global electronics industry.

• According to iSupply, a consulting company, 110 million phones out of 150 million shanzhai phones produced in China in 2009 were exported. That was equivalent to 10% of the global mobile phone sales.

• The main export destinations of shanzhai phones include India and Pakistan. Some of shanzhai phones exported to these countries are re-exported to Africa and some go to Europe via Dubai.

• The quality and practicality of shanzhai phones were made known to advanced countries as foreign visitors purchased shanzhai phones as a souvenir during Beijing Olympics in 2008.

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