The chair is made up of four segments of wood, two for the back and two for the seat, meaning it can easily be taken apart and reassembled in different colour combinations.
Here is some more information from Lars Holme Larsen, Bjarke Ingels and Jens Martin Skibsted of KiBiSi:
Designed for the Danish Pavilion for the Shanghai World Expo 2010 the Shanghai chair is conceived as a single segment of the social bench that orbits the pavilion both inside and outside (designed in collaboration between BIG and Jeppe Hein). The bench is made from pliable planks (two for the seat and two for the back) that move seamlessly through the pavilion to form picnic areas, lounges, safety barriers and bars.
The Shanghai chair is similarly composed of 4 smalls boards folded around each other to form the simplest chair imaginable merging legs and seat, back and structure into the 4 constituent parts. Since the chair can be acquired in multiple colors and is so easy to disassemble and reassemble people will be able to create their own hybrid designs by recombining their colors of choice.