At six-thirty in the morning,Old Chen, who has plunged into AI large model entrepreneurship, pushes open the heavy glass door of SEG Plaza, and the familiar smell of electronic components rushes to him. This veteran merchant, who has been at Huaqiangbei for twenty years, now faces not the mountain of mobile phone accessories and chips, but a variety of AI hardware products—smart translation devices, AI learning lamps, and companion robots are neatly displayed, waiting for the first batch of overseas buyers to inspect.
“Three years ago, we mainly sold TWS earphones and power banks, but now 70% of the products in the store are AI products.” Old Chen points to the latest AI oral learning machine and says, “This thing can analyze pronunciation errors in real-time; yesterday, a customer from the Middle East ordered five hundred units in one go.”
1. The Transformation Journey: From ‘Shanzhai Paradise’ to AI Testing Ground
The transformation of Huaqiangbei did not happen overnight. Around 2018, as the smartphone market became saturated and cross-border e-commerce rose, this once largest electronic distribution center in Asia fell into confusion. Merchants realized that a simple price war was no longer viable.
The turning point came in 2022. With ChatGPT sparking a global AI craze, hardware manufacturers in Huaqiangbei sensed new opportunities. “We were the first to obtain the domestic large model API and adapted it to the existing translation pens,” revealed a manufacturer’s representative, “Sales doubled in three months, and profits are twice as high as those from mobile phone accessories.”
Today, walking down the streets of Huaqiangbei, amidst traditional mobile phone repair signs, AI company logos are appearing densely. The stall that used to sell drones now focuses on AI inspection robots; the workshop that once assembled tablet computers has transformed into producing AI drawing tablets. Data shows that in 2023, the number of AI hardware merchants in Huaqiangbei increased by 47% year-on-year, with AI products accounting for 30% of the electronic market’s shipment volume.
2. The Global Ambition of ‘White Label AI’
In the Yuanwang Digital Mall, Miss Lin is demonstrating an AI detection device that can identify 30 types of crops to an Indian customer. “This system costs only half of what international brands charge, but the accuracy is off by less than 3%.” She skillfully switches between English and Spanish to introduce the product, with a sign reading “AI Hardware Customization Expert” hanging on the wall behind her.
These ‘white label AI’ products, which lack branding but boast impressive performance, are becoming the new calling card of Huaqiangbei. Leveraging a mature supply chain, manufacturers can quickly convert the latest AI technologies into affordable hardware—AI glasses that support real-time conversation are priced at less than 800 yuan, and AI robotic cats with programming education functions are only 300 yuan.
“Huaqiangbei’s advantage lies in rapid trial and error,” says local AI hardware entrepreneur Wang Zhe. “A creative idea can go from design to prototype in just a week, a speed that Silicon Valley cannot match.” His team’s developed AI English learning cards have already been sold to several educational institutions in Southeast Asia through Huaqiangbei channels.
3. Under Currents and Challenges
Behind the prosperity lies hidden worries. In the repair area on the fifth floor of SEG Plaza, an experienced technician is disassembling a faulty AI learning lamp. “The mainboard is burnt, but the AI module cannot be repaired.” He admits that many new products have too high a level of integration, and traditional repair techniques can no longer keep up.
Intellectual property issues loom like the sword of Damocles. Although merchants have started applying for patents, infringement disputes occur frequently. A certain manufacturer’s newly launched AI fitness mirror quickly received a lawyer’s letter due to suspected algorithm plagiarism.
“Simply assembling products won’t lead far,” believes Zhang Li, vice president of the Huaqiangbei Chamber of Commerce. “We must establish our own technological moat.” Currently, several leading merchants have formed joint laboratories with universities to invest in algorithm research and development.
4. The Future is Here
As night falls, the neon signs in Huaqiangbei light up with the word “AI.” Packaged smart hardware is being loaded onto trucks, and tomorrow they will appear on shelves in Dubai and Berlin. After taking stock, Old Chen receives a new order on his phone—200 AI programming robots purchased by a school in Brazil.
This electronic market, once famous for its ‘Shanzhai’ reputation, is uniquely participating in the global AI competition. Perhaps as one practitioner said, “Huaqiangbei never defines technology, but it is always redefining the way technology is popularized.”
As the AI wave sweeps through the hardware industry, merchants in Huaqiangbei are telling a Chinese story of survival and evolution with keen insight and extreme efficiency. Here, every technological revolution is not a threat but a new opportunity.