Making it big in China's Silicon Valley

In China, the country's leadership hopes this emerging group will inject new vitality into an economy that has relied heavily on fixed-asset investment and a massive export drive.

"The 'maker' group shows the vitality of grassroots entrepreneurship and mass innovation," Premier Li Keqiang said during his visit to Chaihuo, the "makerspace" where Zhang is based in Shenzhen. "It will become an eternal engine to support the growth of the Chinese economy in the future."

Shenzhen is at the forefront of this new era in technology with Chaihuo, in the Huaqiangbei area of the city's Futian district, the hot place to be. The city has redefined its image as an innovation hub and enticed a special breed of talent with ideas to match.

"Shenzhen is building itself into a center for international 'makers'," Lu Jian, director of science, technology and innovation commission of Shenzhen city government, said. "We are encouraging 'makers' to start their own businesses here."

More than 1,000 "makers" have been registered with the city's authorities and there are about 30 institutions serving this group, according to official data.

Plans are also in place to hold another Global Makers Fair during June 18 to 22. Hopefully, talent from all over the world will attend and exchange ideas.

Of course, this is all part Shenzhen's ambitious move to morph into China's Silicon Valley.

This might sound ridiculous to some people. After all, Silicon Valley in the US is world famous for turning startups such as Apple Inc, Intel Corp and Yahoo Inc into global giants. At the other end of the scale, Shenzhen is still shaking off its international image as "Shanzhai (copycat) Heaven".

But times are changing and Shenzhen is moving with those times.

Liu Rengen is a senior official with the Huaqiaongbei office in Shenzhen, which governs the biggest electronics market in China. More than 18,000 shops are squeezed into the 1.45 square kilometers area.

"Shanzhai was born in a special period, but I would say it also bred innovation," Liu said. "Pick any electronic product you wanted to make, and you could buy all the devices and components on this street."

Up to seven years ago, you could have found dozens of shops selling fake iPhones or "bandit mobiles" as expatriates called them. Now, you can hardly find one, Liu said, adding that people in Huaqiangbei have actively transformed their businesses from copycat ventures to innovation companies.

Xiaomi Corp represents what can be achieved. In the space of five years, it has emerged from obscurity to be one of the world's top five mobile phone makers. And its exploits have inspired China's business titans of the future.

Key to Xiaomi's success has been innovation rather than low prices. As labor costs in China climb, companies need to tempt consumers with improved products, better branding and online marketing.

Internet giant Tencent Holdings Ltd and logistics company Shunfeng Express have that "added value" sparkle after being launched as start-ups in Huaqiangbei.

"Tencent and Shunfeng Express are two of China's leading companies in their sectors," Liu said. "Both started from Huaqiangbei－and there will be more."

The future certainly looks bright as the next generation of budding entrepreneurs and "makers" pour into Shenzhen hoping for success. With nearly every electronic component within easy reach, all you need is that next big idea.

"Shenzhen is the Hollywood for 'makers'," Kevin Lau, head of the Chaihuo "makerspace", the workshop in west Shenzhen, said. "This is the world's largest market for electronic components. You can buy anything you want at cheap prices.

"You can also find a workshop that is willing to produce your designs－no matter if you are ordering 1,000 items or 100," he explained.

After Premier Li's trip, Chaihuo's fame quickly spread and about 4,000 "makers" have now registered there. Since 2012, the area has held regular fairs.

Last year, 121 "maker" teams, including those from the US, Japan and the United Kingdom, turned up to showcase and share their projects. Around 200 teams from 35 nations and regions will attend this year's event.

Besides providing space and equipment such as 3D printers and laser cutters, Chaihuo promotes the spirit of sharing and "do-it-yourself" in China. Making a huge profit is not the main goal, Lau said.

In Chinese, Chaihuo literally means firewood, and there is an old proverb that when every one adds firewood, the flames rise high. And that is the hope of Lau and his partners.

As the biggest landlord in Huaqiangbei, Shenzhen Huaqiang Industry Co Ltd is convinced its new "makerspace" venture will be successful and profitable.

"We are building a platform that gathers 'makers', designers, venture capitals and media together," Ken Lee, executive general manager of the newly established Huaqiangbei International Maker Center, said. "They will focus on the most prosperous business in China nowadays, including intelligent hardware, Internet tech innovation, or crowd funding. A lot of deals will be happening on our platform."

The Huaqiangbei International Maker Center has invested more than 20 million yuan in building and decorating a rooftop space for "makers" in Huaqiangbei. It will cover 5,000 square meters and house more than 10 teams from June.

The target is to provide a one-stop service that could turn a "maker" into a millionaire entrepreneur. The center will also invest in eye-catching projects through its 200 million yuan venture capital fund and share in any monetary success.

Even so, they are not the only venture capitalists on the block. China Vanke Co, the largest residential real estate developer in China, plans to build an "ecosystem" that incubates "maker" projects, as well as providing technical and financial services.

The property group started in Shenzhen and is looking to construct a high-tech complex in the newly planned development zone in the city's west suburb.

"Building residential and commercial properties is Vanke's traditional strength. But we like to be involved in new trends that will reshape China's economy," Fan Yu, general manager of Shenzhen Vanke Industrial Real Estate Operation Co Ltd, said.

Still, it is important to understand what drives the "maker". "I think it's about helping people unlock their potential," Pan Weiqi, director of the science, technology and innovation commission of Shenzhen municipality, said.

"But it takes a lot to turn an idea into an entity, and even more to turn that entity into a popular commodity. There is a difference between them and entrepreneurs."