Shanghai's Xiangyang Market to Close

Shanghai Daily reports today that Shanghai's Xiangyang Market -- famous for its sales of knockoff fashions -- will be closing on June 20.  The article hints the closing is due to the city wanting to use the property for further development, but I also view this as additional substantive evidence that the Chinese government getting tougher on counterfeit goods.  It can hardly be coincidence that this announcement comes only a month or so before the U.S. congress is to vote on whether to impose punitive duties against China and only a month or so before China's President, Hu Jintao comes to the United States.   

At China's just concluded People's Congress, there was much talk about strengthening China's protection of intellectual property rights (IPR).  What more visible way to do this than to shut down its most famous market for counterfeit goods?  Whether intentional or not, closing down this market does send a message both domestically and internationally that counterfeiting is on the way out.  Though the article vaguely talks about relocating the vendors, I see that as more of an attempt to mitigate anger than as government policy.   

I did a long post here on the Xiangyang market and its over-hyped role in the pantheon of Chinese IP issues.