The Beta Xenon Development Kit (XeDK) was the successor to the Alpha PowerMac G5 XeDK. There were many different versions with the internal hardware varying between each version.
The Beta XeDK was succeeded by the first final Xenon XDK.
Beta XeDKs were used for internal development of the Xenon hardware with later Beta XeDKs being sent to some game studios for early title development.
Beta XeDKs were later replaced with final Xenon XDKs. Microsoft required that studios return their Beta XeDKs after their use had ended. They were intentionally damaged by Microsoft before and then shipped overseas with the intention of being destroyed.
Chinese sellers on marketplaces such as TaoBao began selling the damaged Beta XeDKs which is where the term "China Kit" originated from. These kits often came with destroyed AV/ethernet ports, missing sidecars and also had their serial numbers defaced with a disc grinder. With the ports being identical to the launch model Xenon, the damage was relatively easy to repair and were obtained by many different community members.
Nowadays the Beta XeDKs are mainly a collectible and aren't useful for any normal development work due to their unique pre-release hardware. With most kits being mistreated in their early days, finding a working kit is rare and should be avoided for those who aren't experienced with this kind of hardware.
One of the biggest differences between a Beta 1 XeDK and the later Beta 2 consoles is the use of the Titan debugging board. Beta 1 XeDKs also use an earlier XCPU that was clocked at 2.8GHz instead of the final 3.2GHz clock speed. As a result, they are only able to run XEX1 applications and are not able to run retail or retail patched games.
All Microsoft custom chips in the Beta 1 XeDKs are labelled as engineering samples. It is believed that there is little (if any) difference between the Beta 1 GPU, Southbridge, ANA chip and their retail counterparts.
The case of 007 Beta 1 is an early dark black that is darker than the retail Elite or XDK gray colors. There is also a distinct lack of any Xbox 360 branding on the console with the exception of the rear serial label. The faceplate of the console also different including a convex bind button, extruded text on the first memory slot cover and rubber USB doors.
007 Beta 1 XeDKs were not approved by the FCC and have multiple warnings to deter the possible resale of the consoles.
Beta 1 XeDKs can not run recoveries later than 1838.1.