After six years of thriving business, Huaqiang North in Shenzhen, a global center for cellphone purchasers and distribution of copycat phones, has recently seen a slump in business.
The main reasons are: the government’s enforcement of intellectual property rights ; the market shift to third generation phones (copycat phones are mostly second generation cell phones); copycat cell phone manufacturers are selling products to retailers directly instead of depending on Huqiang North as a distribution center.
Source
China Business News
Google translation