Smartphones have to be made someplace, and that place is China. In just five years, a company named Xiaomi (which means "little rice" in Mandarin) has grown into the most valuable startup ever, becoming the third largest vendor of smartphones, behind only Samsung and Apple. China is now both the world's largest producer and consumer of a little device that brings the entire globe to its user's fingertips. Clay Shirky delivers a compact update on China's evolving economic and political conditions.