China's Shanzhai entrepreneurs: hooligans or heroes? 中國山寨企業家：流氓抑或是英雄

Abstract

In the final months of 2008, a certain kind of imitation mobile phone became popularly known as the ‘shanzhai handset’ ⼭寨⼿机. Originating from the Cantonese word saanjaaih chong ⼭寨廠, the modern Chinese term shanzhai ⼭寨 is often used to refer to activities that are unorthodox, involve imitation, and often mock the mainstream. Despite its widespread use, the actual meaning of the term shanzhai remains debateable. Through an analysis of academic and popular discourse, and with reference to research interviews conducted in China, in this study I attempt to understand the different nuances and significance of the term shanzhai. I assess the extent to which the shanzhai approach is a historical one for China. In comparing ‘shanzhai culture’ to similar practices observable over the past two centuries of Chinese history, I demonstrate that shanzhai is distinctively related to ‘grassroots’ civilian culture. I conceptualise shanzhai production as a form of ‘disruptive innovation’ — a revolutionised mode of production which is enabled by disruptive technologies. Shanzhai products provide what I call the ‘non-consumers’ of the orthodox economy with access to technologies that would be otherwise unaffordable. I speculate that for the Chinese government, a tolerance of the sometimes law-infringing shanzhai consumption culture might serve to dampen the impact of income inequality and maintain social stability. For some policymakers, the unregulated shanzhai economy represents a safety risk. For aspirational up-and-coming local brands, however, it presents an opportunity.