798 Art Zone is a buzzing artist community that has sprung up in the midst of an old factory area. The 50-year-old decommissioned military factory buildings are of interest in themselves, being of unique architectural style. Factory #798 is just one of many buildings within the site that was formerly referred to as Joint Factory 718.

The site actually began as an extension of co-operation between the Soviet Union and the newly-formed People's Republic of China. By 1951, more than 150 "joint factory" projects had been set up, and before the decade was out East Germany had also teamed up with China. For the factories, the East Germans favoured a Bauhaus-influenced design over the more ornamental Soviet style. Large indoor spaces and an abundance of natural light were the signature design of the East German workplace.

Joint Factory 718, which began production in 1957, quickly established itself as one of the best factories in China. During its heyday it offered impressive social benefits to its tens of thousands of workers. The factory boasted everything from the best housing available to workers to literary clubs, libraries, athletics clubs, an orchestra and a hospital. Workshops were part of the study programs held here and Cultural Revolution slogans can still be viewed on the arches of many of the buildings to this day.

However, with the advent of Deng Xiaoping's economic reforms of the 1980s, the factories faced increasing pressure. Deprived of government support, the site gradually declined and by the early 1990s, the factories had closed. Most of the workers were laid off and those managers that remained found themselves responsible for overseeing the industrial park and finding tenants for the abandoned buildings.

The timing was perfect as far as Beijing's art community was concerned. Avant-garde artists had been based on the outskirts of Beijing for a good many years. In 1995, Beijing's Central Academy of Fine Arts was looking for cheap workshop space and ended up moving into defunct Factory 706. What had initially been a temporary move became permanent, and then other artists followed.