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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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□ 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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