Made in (The People's Republic of) China: April 2009 Archives

By David Barboza | THE NEW YORK TIMES
April 28, 2009

The phone's sleek lines and touch-screen keyboard are unmistakably familiar. So is the logo on the back. But a sales clerk at a sprawling electronic goods market in this Chinese coastal city admits what is clear upon closer inspection: this is not the Apple iPhone; this is the Hi-Phone.

"But it's just as good," the clerk says.

Nearby, dozens of other vendors are selling counterfeit Nokida, Motorla and Samsung phones -- as well as cheap look-alikes that make no bones about being knockoffs.

"Five years ago, there were no counterfeit phones," says Xiong Ting, a sales manager at Triquint Semiconductor, a maker of mobile phone parts, while visiting Shenzhen. "You needed a design house. You needed software guys. You needed hardware design. But now, a company with five guys can do it. Within 100 miles of here, you can find all your suppliers."

Technological advances have allowed hundreds of small Chinese companies, some with as few as 10 employees, to churn out what are known here as shanzhai, or black market, cellphones, often for as little as $20 apiece.

And just as Chinese companies are trying to move up the value chain of manufacturing, from producing toys and garments to making computers and electric cars, so too are counterfeiters. After years of making fake luxury bags and cheap DVDs, they are capturing market share from the world's biggest mobile phone makers.

Although shanzhai phones have only been around a few years, they already account for more than 20 percent of sales in China, which is the world's biggest mobile phone market, according to the research firm Gartner.

They are also being illegally exported to Russia, India, the Middle East, Europe, even the United States. "The shanzhai phone market is expanding crazily," says Wang Jiping, a senior analyst at IDC, which tracks technology trends. "They copy Apple, Nokia, whatever they like, and they respond to the market swiftly."

Alarmed by the rapid growth of counterfeits and no-name knockoffs, global brands are pressing the Chinese government to crack down on their proliferation, and are warning consumers about potential health hazards, like cheap batteries that can explode.

Nokia, the world's biggest cellphone maker, says it is working with Beijing to fight counterfeiting. Motorola says much the same. Applre Inc. declined to comment.

Even Chinese mobile phone producers are losing market share to underground companies, which have a built-in cost advantage because they evade taxes, regulatory fees and safety checks.

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AP IMPACT - via UNCENSORED Yahoo! News
By Brian Skoloff and Cain Burdeau, Associated Press Writers
with contribution by Joe McDonald, AP Writer in Beijing

April 11, 2009

At the height of the U.S. housing boom, when building materials were in short supply, American construction companies used millions of pounds of Chinese-made drywall because it was abundant and cheap.

Now that decision is haunting hundreds of homeowners and apartment dwellers who are concerned that the wallboard gives off fumes that can corrode copper pipes, blacken jewelry and silverware, and possibly sicken people.

Shipping records reviewed by The Associated Press indicate that imports of potentially tainted Chinese building materials exceeded 500 million pounds during a four-year period of soaring home prices. The drywall may have been used in more than 100,000 homes, according to some estimates, including houses rebuilt after Hurricane Katrina.

"This is a traumatic problem of extraordinary proportions," said U.S. Rep. Robert Wexler, a Florida Democrat who introduced a bill in the House calling for a temporary ban on the Chinese-made imports until more is known about their chemical makeup. Similar legislation has been proposed in the Senate.

The drywall apparently causes a chemical reaction that gives off a rotten-egg stench, which grows worse with heat and humidity.

Researchers do not know yet what causes the reaction, but possible culprits include fumigants sprayed on the drywall and material inside it. The Chinese drywall is also made with a coal byproduct called fly ash that is less refined than the form used by U.S. drywall makers.

Dozens of homeowners in the Southeast have sued builders, suppliers and manufacturers, claiming the very walls around them are emitting smelly sulfur compounds that are poisoning their families and rendering their homes uninhabitable.

"It's like your hopes and dreams are just gone," said Mary Ann Schultheis, who has suffered burning eyes, sinus headaches, and a general heaviness in her chest since moving into her brand-new, 4,000-square foot house in this tidy South Florida suburb a few years ago.

She has few options. Her builder is in bankruptcy, the government is not helping and her lender will not give her a break.

"I'm just going to cry," she said. "We don't know what we're going to do."

Builders have filed their own lawsuits against suppliers and manufacturers, claiming they unknowingly used the bad building materials.

The Consumer Product Safety Commission is investigating, as are health departments in Virginia, Louisiana, North Carolina, Florida and Washington state.

Companies that produced some of the wallboard said they are looking into the complaints, but downplayed the possibility of health risks.

"What we're trying to do is get to the bottom of what is precisely going on," said Ken Haldin, a spokesman for Knauf Plasterboard Tianjin, a Chinese company named in many of the lawsuits.

The Chinese ministries of commerce, construction and industry and the Administration of Quality Supervision Inspection and Quarantine did not respond to repeated requests for comment. Chinese news reports have said AQSIQ, which enforces product quality standards, was investigating the complaints but people in the agency's press office said they could not confirm that.

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U.S. Naval Institute
March 31, 2009

With tensions already rising due to the Chinese navy becoming more aggressive in asserting its territorial claims in the South China Sea, the U.S. Navy seems to have yet another reason to be deeply concerned.

After years of conjecture, details have begun to emerge of a "kill weapon" developed by the Chinese to target and destroy U.S. aircraft carriers.

First posted on a Chinese blog viewed as credible by military analysts and then translated by the naval affairs blog Information Dissemination, a recent report provides a description of an anti-ship ballistic missile (ASBM) that can strike carriers and other U.S. vessels at a range of 2000km.

The range of the modified Dong Feng 21 missile is significant in that it covers the areas that are likely hot zones for future confrontations between U.S. and Chinese surface forces.

The size of the missile enables it to carry a warhead big enough to inflict significant damage on a large vessel, providing the Chinese the capability of destroying a U.S. supercarrier in one strike.

Because the missile employs a complex guidance system, low radar signature and a maneuverability that makes its flight path unpredictable, the odds that it can evade tracking systems to reach its target are increased. It is estimated that the missile can travel at mach 10 and reach its maximum range of 2000km in less than 12 minutes.

Supporting the missile is a network of satellites, radar and unmanned aerial vehicles that can locate U.S. ships and then guide the weapon, enabling it to hit moving targets.

While the ASBM has been a topic of discussion within national defense circles for quite some time, the fact that information is now coming from Chinese sources indicates that the weapon system is operational. The Chinese rarely mention weapons projects unless they are well beyond the test stages.

If operational as is believed, the system marks the first time a ballistic missile has been successfully developed to attack vessels at sea. Ships currently have no defense against a ballistic missile attack.

Along with the Chinese naval build-up, U.S. Navy officials appear to view the development of the anti-ship ballistic missile as a tangible threat.

After spending the last decade placing an emphasis on building a fleet that could operate in shallow waters near coastlines, the U.S. Navy seems to have quickly changed its strategy over the past several months to focus on improving the capabilities of its deep sea fleet and developing anti-ballistic defenses.

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By AFP (Agence France Presse) | via UNCENSORED Yahoo! News
April 01, 2009

Police in southwestern China have detained an activist who was investigating whether shoddy construction caused school collapses in last year's massive earthquake, a rights groups said Wednesday.

The detention of Tan Zuoren comes amid a crackdown by authorities in Sichuan province ahead of the first anniversary of the devastating May 12 quake, Chinese Human Rights Defenders said in a statement.

Tan was taken away Saturday by police who also searched his home in the provincial capital Chengdu, confiscating some documents, the group said.

"It is believed that Tan was detained for mobilising volunteers to conduct an independent investigation (into) the causes of the collapsed school buildings," said the group, a network of domestic and overseas activists.

It said Tan was detained on "suspicion of subverting state power," a charge typically used to silence government critics.

Chengdu police refused comment when contacted by AFP.

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