Nation's 'silicon valley' moves with the times

Closure notice

In late August, a notice posted in Ding Hao Mall in Zhongguancun, home to outlets selling electronic devices, drew widespread attention.

It stated that the authorities had ordered the mall－which opened in 2003－to close in October for renovation and upgrading work.

One thing now seems certain－the mall will no longer be the place to go for computers, cellphones and other electronic products.

Lin Lei, a software engineer for a company in Zhongguancun, said: "It sounds like the end of an era to me. I studied at Beijing Jiaotong University, which is not too far from Zhongguancun, where I bought my first computer in 2004 when I was a freshman."

In recent years, two other major electronics markets in Zhongguancun have been closed and transformed into offices for high-tech companies.

In the early 2000s, it was hard to find anyone in their 20s and 30s who had not visited Zhongguancun.

Housing several spacious malls selling computers, related accessories, cellphones and other electronic products, the area was widely known throughout northern China, not just in Beijing.

Nearly every student went to Zhongguancun at least once during their college years to buy a laptop or a phone. Office workers went to the area for DVDs, printers and screens.

Lin said: "The cellphone market at the Ding Hao Mall covered an entire floor. You could find any brand of phone－some you knew and some you had never heard of. Prices were low."

Gao Yong, a businessman who used to sell phones at the mall, said he rented a small counter there in 2008.

"You never needed to worry about a lack of customers. It was always crowded and I sold dozens of phones every day," he said.

However, as time passed, problems arose－fraud being the most serious, followed by fake products.

Liu Qiangdong, the founder of e-commerce giant JD, which began life by operating from a 4-square-meter office in Zhongguancun in 1998, said earlier that he saw widespread cheating at the time.

He started selling electronic products online with "transparent prices" and full after-sales service, attracting an increasing number of customers over the years.