The term CHINA DEFECT can be broken down into two words, CHIP and NADEF. CHIP is a four letter word meaning a small piece of semiconductor material used in the production of electronic circuits. NADEF is an acronym for National Association of Defects and Defectors, a Chinese organization that works to protect the rights of defectors from China. The organization provides legal assistance, medical care, and other services to those who have fled the country due to political or religious persecution.