Designed in China: Part Two

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:00:00. > :00:51.It probably won't surprise you if I told you China makes a lot of stuff,

:00:52. > :00:57.but would you believe it makes quite this much? In 2011, the country

:00:58. > :01:02.produced 90% of all computers, 80% of all air conditioners and

:01:03. > :01:06.energy-saving lightbulbs, 70% of all cellphones, just over 1 billion of

:01:07. > :01:12.them, and also found time to make 63% of the world's shoes. And much

:01:13. > :01:22.of all of that would have come from this place. Welcome to the city of

:01:23. > :01:27.Shenzhen. So much of the world's Electronics come from Shenzhen. So

:01:28. > :01:33.many of your electronics started life here. Cases, components,

:01:34. > :01:40.circuit boards, chips. This is where stuff gets me. -- made. On the

:01:41. > :01:48.southern coast, it is called the Workbench of China. And for good

:01:49. > :01:53.reason. Less than 40 years ago, only 30,000 people lived here. Now there

:01:54. > :02:01.are 12 million. That explosive growth is built on foundations of

:02:02. > :02:07.silicon. This week, I am on a mission to find out how our things

:02:08. > :02:11.become, well, things. And as the saying goes, when it comes to

:02:12. > :02:21.electronics, all roads lead to Shenzhen. This is the hardware

:02:22. > :02:25.accelerator in downtown Shenzhen. Each year, teams of hopeful

:02:26. > :02:30.entrepreneurs make a pilgrimage to this place to plan, prototype and

:02:31. > :02:36.perfect their gadgets of the future. But before I show you around, time

:02:37. > :02:40.for a spot of lunch. We call it micro foods, so which is insects as

:02:41. > :02:46.a new protein. It is something that has been eating for a long time in

:02:47. > :02:51.all parts of the world, actually. -- eaten. It can be very efficiently

:02:52. > :02:59.grown. This is the smallest possible footprint of producing protein and

:03:00. > :03:07.nutrients. So better than plants, better then a cow? Definitely better

:03:08. > :03:11.than owning a cow. You can grow it on waste materials. You don't have

:03:12. > :03:17.to add additional water, they take it out of the food they get. And you

:03:18. > :03:24.need very that all energy. What do they taste like? You can just try

:03:25. > :03:29.them. What do they taste like? They taste slightly nutty. Mostly

:03:30. > :03:36.neutral. That's what I wanted to know. They can actually be mixed

:03:37. > :03:42.into any types of recipes. In this way, we rested them, so they are

:03:43. > :03:45.roasted and crispy. But you can also make them into a meat patty and make

:03:46. > :04:03.them into a burger. It is a shrimp that came on land a

:04:04. > :04:12.really long time ago. That is what it is. It's not bad. Living farms is

:04:13. > :04:17.only one of the companies currently in residency and there is no

:04:18. > :04:26.shortage of interesting ideas. There is the auto guitar tuner, the skiing

:04:27. > :04:33.brutes that Rajasthan, the Internet of things, and the remote control

:04:34. > :04:41.fish tank cleaner -- that tracks your style. This takes liquid

:04:42. > :04:45.materials, special formulations, and converts them into fibres using an

:04:46. > :04:49.electric field. What happens is this little spinning needle produces

:04:50. > :04:53.fabric that is composed of the fibres. This machine is aimed at

:04:54. > :04:57.researchers right now. We are looking to get into the market and

:04:58. > :05:03.help people ring advanced textiles to a commercially viable point by

:05:04. > :05:12.making available a fast machine. Shenzhen has a wealth of vendors so

:05:13. > :05:19.for a prospective area could they be to shops to work with. They respond

:05:20. > :05:23.to text messages and allows us to do work in a short amount of time for

:05:24. > :05:30.cheap. It is good quality work as well, so good from unflattering. It

:05:31. > :05:34.has been here since 2011, and over 100 companies and their ideas have

:05:35. > :05:40.passed through. It is empty today because there is another office over

:05:41. > :05:43.in the US, and at the moment, everyone is over there showing off

:05:44. > :05:49.their creations, including the boss. Nice to meet you. It is bizarre that

:05:50. > :05:55.you are in San Francisco and I am in Shenzhen. Why do you have a space

:05:56. > :06:00.here and a space in San Francisco? Surely all of the action is here?

:06:01. > :06:06.Yes, the early stage action is there, definitely, and all of the

:06:07. > :06:14.entrepreneurs in the world who go to Shenzhen and work with suppliers to

:06:15. > :06:18.build B best products to get to market, but after investing and

:06:19. > :06:21.accelerating about 145 companies in the last two years, I realised it

:06:22. > :06:28.was important to sell those products, and it is difficult to

:06:29. > :06:36.sell a product compared to building it. So we have been building the

:06:37. > :06:41.next phase of the programme in San Francisco. The big appeal is that it

:06:42. > :06:44.is within a short walk of some of the best and biggest electronic

:06:45. > :06:49.markets in the world. That means instant access to the cornucopia of

:06:50. > :06:54.components you will need to source if you want nothing to become a

:06:55. > :07:00.thing. -- your thing to become a thing. I said the word thing again.

:07:01. > :07:04.That can only mean the markets of Shenzhen are so advanced it would be

:07:05. > :07:13.foolhardy to venture in alone. I need a guide. So we are at Singapore

:07:14. > :07:24.airport and heading to Hong Kong. We go out there once a month. Andrew,

:07:25. > :07:31.or Bunny for short, is omitted Terry Hacker and MIT graduate -- legendary

:07:32. > :07:41.hacker. He has written books, including the essential guide to

:07:42. > :07:47.electronics in's. He will do. -- in Shenzhen. You can see the circuit

:07:48. > :07:55.lights up. There is no soldering required.

:07:56. > :08:02.Today, Bunny is making the pilgrimage to Shenzhen, like many

:08:03. > :08:06.entrepreneurs before him. I am tagging along to find out what it is

:08:07. > :08:10.about. This is where I come to do a lot of searching to see what is

:08:11. > :08:17.available, what is selling and not selling. There are cables here, and

:08:18. > :08:21.cables there. How do they price each other? That is the whole idea of

:08:22. > :08:28.this market. It is intensely competitive. Discounts are easily

:08:29. > :08:32.ten have one of what you can get in online retailing in the states.

:08:33. > :08:41.These are the same things? They are resold there. And it is not long

:08:42. > :08:46.before I succumbed to the magic of the market. They are beautiful. I

:08:47. > :09:00.will have "As well, please. The charging squid -- script! The dress

:09:01. > :09:07.is the ordering. -- the choice is well known. There is a choice of two

:09:08. > :09:14.more floors. Of radio switches. Display connectors. Second-hand

:09:15. > :09:19.parts. Power adapters. USB connectors. Industrial controls.

:09:20. > :09:28.These are battery holders inside toys. Bits of wire. I could come

:09:29. > :09:31.here and ask today and say I want a longer wire and you will make it up

:09:32. > :09:40.and have them ready for me by the next day. When I come to Shenzhen I

:09:41. > :09:44.don't even pack tools. I buy everything I need as it is such a

:09:45. > :09:50.hassle to get through airport security. Then I just leave them in

:09:51. > :09:55.the hotel when I leave. It is cheaper than paying for packed

:09:56. > :10:00.luggage. Development kits, that engineers would buy. Programming

:10:01. > :10:04.dear within ten metres of here. You can get everything you need to take

:10:05. > :10:19.a simple project and bring it into existence -- dear. -- side. I have

:10:20. > :10:24.spent a decade here. It is like the movie Inception. The market has

:10:25. > :10:31.reinvented itself by the timely comeback. If you do a deal, what do

:10:32. > :10:38.you do? Do you shake on it or have some kind of... ? It is a crazy

:10:39. > :10:42.thing where sometimes you say you need 10,000 parts, and it is not a

:10:43. > :10:46.small amount of money. A lot of times a person will come along and

:10:47. > :10:51.say comeback in two days. I could not come back with the money and

:10:52. > :10:57.they will have the parts, and lot of time they don't ask for a deposit.

:10:58. > :11:14.Bettered you then me. -- Betty do then me. -- better you than me.

:11:15. > :11:21.And that is it for the shortcut of Click in China. The full-length

:11:22. > :11:25.version is available to watch online right now. We are back in China

:11:26. > :11:30.again next week. Catch us on Twitter throughout the week. We will be

:11:31. > :11:35.putting up backstage photos as well. Thank you for watching. Seducing. --

:11:36. > :11:38.see you soon.