The capital's 20-year-old Xiushui Jie, also known as the Silk
Market, is expected to close next month due to safety
considerations.
A government notice posted Monday at the south end of the
500-meter-long pedestrian street states that all 400-plus vendors
will have to move out of the market between January 6 and January
10 next year.
Many vendors told China Daily that the only thing they
can do is to sell as many goods as they can before then.
Beside the government notice are posted several objections to
the closure written by university professors. They urge the local
government to reconsider the move and protect the interests of
private business people.
Debate surrounding the closure was stirred up in May when
peddlers were told the bustling outdoor market was being closed
because the three-meter-wide street is susceptible to flash
fires.
A five-story building, known as the New Silk Alley Market, is
being built nearby and will replace the old market.
The Jianwai Subdistrict Office of Chaoyang District, which has
jurisdiction over the market, justified its closure by saying that
during rush hour the street is so busy that fire engines would not
be able to get to a fire if one broke out in the market.
In addition, the office says, the vendors hawking their products
and the massive number of shoppers have greatly disrupted the lives
of local residents.
However, peddlers argue that rental fees at the new mall are too
high and some experts say the market would lose its unique flavor
and prosperity if it is moved to the new building.
In a stall rental auction for the New Silk Alley Market held in
late June, the price of renting a five square-meter stall for five
years reached 3.95 million yuan (US$478,000).
This means a vendor must earn more than 790,000 yuan (US$95,500)
after tax a year just to cover the rent, which is unthinkable to
most vendors whose net profit per month is roughly 10,000 yuan
(US$1,200), said a local media report.
A recently posted notice issued by the developer of the new
building states vendors from the old market would enjoy many
preferential policies if they rent booths at the new mall.
The favorable policies include exemption from a
one-year property management fee, a discount of 50 per cent from
the monthly rental charge, a reduction of 50,000 yuan (US$6,000) of
the admission fee, and financial guarantees for bank loans.
"We have not decided yet whether to move to the new building or
find another place. We will wait and see," said a young vendor.
The new building, scheduled to be completed by year's end,
covers 28,000 square meters with a capacity of over 1,000 stalls,
more than double the number in the outdoor market.
(China Daily December 21, 2004)