Shenzhen Goes Ham

In the realm of technology and innovation, decentralization has emerged as a powerful force shaping the way we create, collaborate, and distribute power. Despite what crypto-boys want us to believe, blockchain, bitcoin, and DAOs are far from the first, let alone the best, manifestations of decentralization. The feudal system, the silk road, and the Greek city states were all built around principles of distributed power and organization.

Ham (or amateur) radio is often hailed as the prime example of decentralization. This communication medium, rooted in the early 20th century, enabled direct peer-to-peer interactions without reliance on centralized infrastructures, while its community embodied a spirit of experimentation, self-reliance, and collaboration. Up until the current day, ham operators contribute to a network that spans the globe. Resilience is inherent in ham radio, which is demonstrated by its adaptability to technological challenges and its capacity to maintain communication in times of crisis. Ham radio thereby laid the groundwork for all decentralized communities to come.

Over the last few decades, an even superior model of decentralization has started to appear in and around Shenzhen. The so-called shanzhai — literally: mountain stronghold, slang: to copy or parody — known for their unconventional and sometimes flamboyant innovations, have become the avantgarde of technological ingenuity and agility. This ecosystem of smaller manufacturers in China has repeatedly defied conventional norms, producing an array of unique and unexpected devices. From modified but practical versions of popular gadgets (the dual-sim smartphone) to entirely novel creations (a smartphone that look like a pack of Marlboros), the shanzhai are characterized by a daring spirit of experimentation and a rapid pace of innovation. Showcasing the ecosystem’s ability to quickly adapt to changing consumer demands and technological trends.

Initially seen as a gang of shameless copycats, it is through the pioneering work of Andrew ‘bunnie’ Huang that a more generous and accurate view on the shanzhai has arisen. His book The Hardware Hacker (2017) is exceptional because his analysis of the Shenzhen ecosystem is free from any preconceived (i.e. Western) notions of innovation and creativity. By doing this, he comes to a vision of the shanzhai’s full, future potential.

I have a theory that when the amount of knowledge and the scale of the markets in Shenzhen reach critical mass, the Chinese will stop being simply workers or copiers. They’ll take control of their destinies and ultimately, become innovation leaders. These stories about the shanzhai and their mashups are just the tip of an iceberg with the potential to change the way business is done — perhaps not in the United States, but certainly in that massive, untapped market often referred to as ‘the rest of the world.’

—Andrew ‘bunnie’ Huang

To bunnie, the shanzai’s true innovation does not lie in the electronics that they produce. It is the model of production that is the real game changer. Their principles are evolved versions of those seen in the ham radio decentralization model.

Peer-to-Peer Collaboration: Like ham radio, the shanzhai embrace a peer-to-peer approach to collaboration. However, while the amateur radio community focuses on communication protocols and technologies, the shanzhai extend this concept to the entire electronics manufacturing process. Their decentralized network involves a multitude of actors, ranging from manufacturers and designers to innovator. Collectively this diverse ecosystem contributes to the creation of a plethora of electronic products, marking a clear departure from the more specific focus of ham radio and its rather homogenous community.

Rapid Iterative Innovation: The shanzhai’s emphasis on rapid iteration and adaptation in the competitive electronics market represents an evolution from the ham radio model. Among the shanzhai, speed of innovation and adaptation is essential for staying competitive, surpassing the traditional and more leisurely pace often associated with ham radio experimentation.

Market Resilience: the shanzhai exemplify a remarkable level of resilience within the Chinese industry. This resilience is multifaceted, extending beyond technical challenges to address broader economic and societal considerations. In the face of market challenges, supply chain disruptions, and rapidly changing consumer preferences, the shanzhai model has demonstrated an ability to swiftly adapt and innovate. The decentralized nature of the shanzhai empowers the industry to respond dynamically to external pressures.

Civil Resilience: Furthermore, its model also leads to an increase in civil resilience by contributing to economic diversification and empowering local communities. The model’s adaptability and ability to navigate complexities in the global electronics market underscore its significance not only as an innovative manufacturing approach but also as a contributor to broader societal resilience.

Ecosystem-sourced Development: Central to the Shanzhai approach is the fact that manufacturers share intricate blueprints that outline the design and structure of electronic devices, along with bills of materials specifying required components and their sources. This shared information cultivates a dynamic and expansive collaborative environment within the Shanzhai ecosystem. Shanzhai’s progressive view on intellectual property further distinguishes its approach, allowing for a more open and flexible innovation ecosystem where ideas and designs are freely shared. In The Hardware Hacker, this practice is refered to as gongkai.

The West has a ‘broadcast’ view of IP and ownership: good ideas and innovation are credited to a clearly specified set of authors or inventors, and society pays them a royalty for their initiatives and good works. China has a ‘network’ view of IP and ownership: one attains the far-reaching sight necessary to create good ideas and innovations by standing on the shoulders of others, and people trade these ideas as favors.

— Andrew ‘bunnie’ Huang

In bunnie’s eyes, gongkai (meaning: open or to make public) also challenges that other dominant, contemporary, Western mode of decentralized production: open source. He claims that this model is much more suited for open hardware than its Western counterpart. Without Gongkai, hardware hackers are to either doomed use old-dated and more expensive components, or they have to resort to reverse engineering.

Through gongkai, an innovative decentralized practice, the shanzhai have created a vibrant ecosystem that is capable of iterating and innovating at an incredible speed, while at the same time being more resilient than most other ecosystems. However, the accelerated pace of production and the constant evolution of electronic devices within the Shenzhen ecosystem comes at a cost. And in the case of the shanzhai it is predominantly nature that pays the price. Its practices of rapid iterations do not only result in innovation, but also in tons and tons of waste. The disposability of outdated components, prototypes, and devices forms the shadow side of the Shenzhen manufacturing landscape.

The environmental impact of the shanzhai model is multifaceted and profound. The rapid iteration cycle, while driving innovation, leads to an accelerated turnover of electronic products. This results in a significant increase in electronic waste (e-waste), a growing global concern. The informal nature of many shanzhai operations often means that proper e-waste management protocols are not consistently followed, leading to improper disposal of hazardous materials contained in electronic components.

Furthermore, the shanzhai model’s emphasis on speed and cost-effectiveness can sometimes come at the expense of environmental considerations in the manufacturing process. The use of cheaper, less environmentally friendly materials and production methods can lead to increased pollution and resource depletion. The decentralized nature of the shanzhai ecosystem, while beneficial for innovation, can make it challenging to implement and enforce stringent environmental standards across the board.

The environmental footprint extends beyond waste generation. The energy-intensive nature of electronics manufacturing, coupled with China’s heavy reliance on coal-powered electricity, means that the carbon footprint of shanzhai production is substantial. The rapid prototyping and small-batch production runs characteristic of the Shanzhai model can be less energy-efficient than larger, more optimized production processes.

However, it is important to note that the shanzhai model also holds potential for positive environmental impact. Its emphasis on resourcefulness and adaptability could be leveraged to drive eco-innovation. Some Shanzhai manufacturers have begun exploring more sustainable practices, such as using recycled materials or developing products specifically designed for easier recycling or longer lifespans. The model’s inherent flexibility could allow for quicker adoption of green technologies and practices compared to more rigid, traditional manufacturing systems.

While the shanzhai breaks with the Silicon Valley model of innovation and IP, they still share its mindset of exponential growth and excess. If the gongkai model will shape the future technological landscape, it becomes imperative to balance its innovative strengths with environmental considerations, fostering a regenerative perspective on value creation and waste production.