This market located by the US Embassy is being moved indoors but it's still there for now. Look for silk items, knock-off clothes like Northface jackets (can be real - who knows? .... but beware...they may be fake), Beanie Babies (illegal to bring back into the USA but hundreds of tourists do it), traditional silk clothing, blouses, underwear, pocketbooks, etc

The Original Silk Alley was one of the commercial jewels of the Beijing of the recent past. With a long history, bustling but intimate athmosphere, smart traders and before: trading high quality against bottom prices, for a very long time it was one of the hidden gems of the City. Although out of the way, for those who knew how and where to find it it was a small treasure trove of exotic and exclusive luxury goods so often bought against very low prices.

It was an idyllic market which however no longer exists.

Moved away to and almost disappeared to make way for the now booming CBD of Beijing with its monumental modern architecture, the Xiu Shui Street was moved inside its very own Modern Mall Building in the year 2004, losing much of its former charm. Today Silk Alley remains high on most organised tourist iteneraries, but in all honesty: its quality, charm and certainly the bottom prices are a thing of the past. Today it is a mass tourist spectacle notorious for hawking and the sales of counterfeit silks and copied brands.

Have a browse around the building and have a browse of the still spectacular silks, wild prints, very wide choice, and of course the commercial madness that comes along with trading on a popular market in Beijing.

Born from the first economic liberalizations that came in the wake op the rise of Deng Xiaoping and the success of his 'opening up policy', Beijing's Silk Alley was one of the first such markets in all of China, strategically located near the new and then growing South Embassy Area in Chaoyang. First recognized by Embassy personnel, foreign journalists and business people lucky enough to be able to pay a visit, the street quickly acquired international fame and was hailed as a great example of the new economic policies taking effect in and later cheap knockoffs.

The Silk Market - the New Xiushui Market is fun and yes, everything is fake. It takes a lot of patience, time and back and forth with the calculator, but the people are wonderful.

Start at the top floors for quality items, and remember: whatever designer bags you buy that are not real will be dealt with by customs. So, stick to the things that do not violate the international trade laws. If it is your first time, and you are a U.S citizen, then you will be warned as you enter the states. However, if you've been warned and you have fake bags - they will be confiscated.

Also, make sure you ship your "flying UFOs." You can get them for $5.00 USD, make sure they have the English instructions and set them up for you. You cannot board the flight with the UFOs, in carry-on or checked luggage, because the magnets are very powerful. It is an amazing toy.