5. fake goods
The gongkai system fosters an amazing amount of innovation in China, and the shanzhai can make interesting original products, like the cell phones I showed you in Chapter 4. That said, China does produce plenty of fake electronic goods, and they aren’t all knockoff iPhones. Clever counterfeiters can produce fake integrated circuits, including microSD cards and even FPGAs.
WELL-EXECUTED COUNTERFEIT CHIPS
For instance, in 2007 (while I was still working with Chumby) I encountered some counterfeit chips so well executed that I couldn’t be certain they were fake without investigating.
Two suspicious chip specimens from an Asian source ...