The company which manufactured HiPhone, with its brand slogan of "not iPhone, better than iPhone", had its own registered trade mark and a complete operating system.

"We know Apple may sue us, but it's driven by huge market demand. Our company needs to copy from famous brands to survive first, and we will improve our R&D and seek further development in the future," said Zhang Haizhen, vice-president of the company. Zhang chose to be identified by his own name without mentioning the name of his company.

The HiPhone company sold out about 5,000 HiPhones in the past three months, and according to Zhang, at least one million other fake iPhones had been put on sale in the mainland market, some of which were even rip-offs of HiPhones!

Zhang claimed his company was developing the technology of integrating two mobile network operators onto one cellphone.

"Imitation is the first stage for all mobile companies," he insisted, "but in the long run, it's only dog-eat-dog, that's why we are working on our home-made independent brand," he said.

From electronics to clothes and accessories, "Shanzhai" models could be a rags-to-riches story for manufacturers. But critics frowned on "Shanzhai's" lack of creativity and consumers complained some "Shanzhai" products had no quality assurance or after-sale services.

A China Central Television (CCTV) news program on November 30 concluded that "Shanzhai" companies must have independent innovation and produce qualified products with IPR to establish long-standing, homemade, quality brands.

Still, the word's popularity is overwhelming. Not only is the word used in commercial TV programs and dramas and about ordinary people whose appearance looks like certain celebrities, but also many grassroots parodies made by ordinary people have been nicknamed "Shanzhai."

The fake New York Times announcing the Iraq war ended, dated July 4, 2009, was also called in China a "Shanzhai" version of The New York Times.

China also has a "Shanzhai"-version "Bird's Nest" woven by farmers with bamboo, and a "Shanzhai"-version "A Dream of the Red Mansion" (one of the classics of Chinese literature) drama directed by a college student and played by his family members.