Learning by Copying

The innovativeness of Chinese entrepreneurs (whether capitalist or self-employed, whether in private or state owned enterprises) can be observed in all sorts of activities, but perhaps none as glaring as in the copying of name brand products. You can buy just about any imaginable product in China at a fraction of the retail (or wholesale) cost in the U.S. or Europe, although most of these products are copies of patented name brand products made by large transnational corporations. Exactly the same sort of entrepreneurial behavior was common in the United States prior to World War II, when American entrepreneurs stole lots of ideas (and counterfeited the products) of European companies. In both cases, copying products of established companies serves to diffuse knowledge of the use values most desired by customers. It's a way of learning how to make products that sell. This includes picking up on both the practical aspects of the use value and on the more ceremonial aspect. By copying a Honda motorbike, Chinese entrepreneurs begin to learn how to make a motorbike that satisfies consumer tastes. Eventually, Chinese brands will rise to prominence, partly as a result of the diffusion of this knowledge. When looked at in that way, it is no surprise that Chinese government authorities are less than aggressive in cracking down on the "knock off" trade.