Zhongguancun has a reputation for being the seedy underbelly of Beijing's electronics scene. It's the one and only place to get your fake software, cheap components and knock- off electronics. But Haidian district government wants to take away the area that has become a staple for students and visiting expats alike, and replace the dodgy dealing market with offices full of researchers, big name companies pumping out high-end tech, and faceless corporations.
At the end of May the district announced plans to tackle the area, part of their ongoing plan to reform what they want to be known as "China's Silicon Valley" into a reputable place for people to do business. High up on their agenda were DIY computer sellers, who buy up components to put out their own unbranded machines, as well as the obligatory fa?ade of cracking down on counterfeits.
None should have more to fear than those in Hailong Tower, one of the symbols of the area, the massive complex which dominates the view straight outside Zhongguancun subway station. But most merchants inside were completely unaware of any plans for change, despite the demise of similar complexes nearby.
"There is no way they will close this place down. It's impossible for the government to close anything here. It's owned by the government, if they want to regulate the market, they won't start here," said an angry stallholder who refused to be named.
"When people refer to Zhongguancun, they normally only use two words - fake electronics - the government knows this is going on, they know what happens all around, that's why it's got this semi-legal status," he added. "If they try to regulate anything it's just for show. If they really want to do something about it, they should be focusing on all the black market suppliers operating out of Hong Kong."
While certain that his business would not be closed, the anonymous young man selling bona fide computer accessories welcomed the idea of complete reform. The situation in places like Hailong Tower has now become so bad for many smaller merchants that they struggle to make money. Preposterously high rents, the mistrust of the public and also the mistrust of suppliers have made life difficult. He admits that he has considered taking his business to Taobao or Jingdong (online shopping companies) where he might be able to make money.
"Everyone criticizes Zhongguancun, but we have our own hardships to bear," he rants, "take a mouse for example, selling it on Jingdong for 100 yuan ($15), you're making maybe 40 yuan in the process. If I wanted to make that here selling the same mouse, from the same supplier, I have to sell it for 200 yuan."
Most of the small businesses in Hailong have to make 1,000 yuan a day just to stay afloat and keep their rental space, and it's not easy to sell legitimate electronics in a place renowned for knock-offs.
"It's all because of the high rental costs. You buy it elsewhere at a bigger store and you'll get a receipt, be able to pay by card and can look at the product first. We can't even return a product to the supplier if it has been unboxed; most larger companies can."
Just across from the legitimate looking computer accessories stall is a software vendor, in stark contrast, there is almost no chance that anything on sale is from a legal supplier.
"I've been in Zhongguancun for many years before I came here to Hailong Tower, and I've been in this building for almost a year. It's not a problem if they close it, I'll just move somewhere else. But I think you'll find that around 80 to 90 percent of the software you can find in this area is fake," said the stallholder, surnamed Zhao.
Most of the boxes stacked up around Zhao's stall are not games, but work or productivity related software. The boxes look like the real deal, but the discs inside are certainly not, often cracked by third party developers to undo the copy protection. This is exactly what the new plan for Zhongguancun wants to stop.
"These government efforts really are a bit stupid," said Zhao, who has heard the argument before. "This really isn't the biggest problem for people who come here. The real problem in China is that real software is so expensive. For example, various Adobe software is priced at more than 10,000 yuan; if you only buy a computer or a laptop you'll spend maybe 5-6,000, but the software costs so much more than that. People are buying fakes solely because of the price!" he added.
Zhao had also heard nothing about the plans for Zhongguancun, which began to raise doubts whether any action had so far been taken. Yet, on the same floor, just next to the stallholders they are supposed to be evicting is the Zhongguancun marketing management office. They confirmed that while the plans were not set in stone, they would be moving along some of the shadier DIY computer sellers and assured everyone that the government would find them a suitable place to go.
This is the situation that the entire Tai Ping Yang computer market found itself in not so long ago. Also caught up in the great new redevelopment plan, the market was given a deadline to close down completely in July. Rather than bringing in new and creative businesses, the entire building was sold to Peking University to use as teaching rooms.
The merchants were promised that the authorities would assist them in the hunt for new locations. By May's end, the building was already empty leaving only a few miserable stragglers behind.
"Nobody cares about us!" said one stallholder who declined to give her name. "There have been no regulations mentioned and no information has been passed down. We've just been left on our own and told to move out."
None of the sellers inside were given help on relocating; most made their own way to other places in the same area. The merchants left are still trying to ply a trade, but unsuccessfully, sitting in the darkened basement of the building. When we asked one where she would go, she just shook her head and looked sad.
Sun Jianing contributed to this story