China’s Silicon Valley set to fade away Zhongguancun, a once landmark technology zone in northwest Beijing, is now withering away. Just a few days ago, E-Plaza, the biggest computer shopping mall in the area, closed its doors to individual retailers. It is soon set to shut down entirely. Hailed as China’s Silicon Valley in the mid-1990s, Zhongguancun used to be a thriving marketplace for tech goods and computer accessories, drawing retailers from across the country. For nearly two decades, it was the embodiment of new technology development in China. However, the growth of e-commerce and online shopping industry has led to a steady decline in footfalls. That has meant that an increasing number of store owners have decided to leave the market and set up shop online. Another reason for Zhongguancun’s decline is the lack of adequate regulation. The market was plagued by illegal vendors and sellers. Often these people would undercut the legitimate stores by dragging away or harassing customers and even cheating them. That meant that more customers were wary of purchasing goods, even if it was at a legal vendor’s outlet.
Posted on: Tue, 27 Jan 2015 15:40:00 +0000