China infamous "shanzhai," or fake mobile phone industry days may be numbered after several years of booming business. The Ministry of Industry and Information Technology has joined with the State Administration of Industry and Commerce to crack down on the industry for the first time. Targeting sellers and producers, illegal phones will be seized and destroyed and those involved in the business punished.
The phones are mass-produced at low cost by small domestic companies. They are illegal because some producers don't have business licenses and none of the phones has network access licenses.
The phones have been extremely popular in China because they look like all the current popular brands, such as iPhone and BlackBerry, with some even boasting similar functions but selling for a much lower price.
But the cheap phones have many drawbacks. After-sales service is poor or non-existent, some have high power batteries that may explode, and they are prone to the latest "money-stealing" scandal.
Source : People's Online Daily