PanJiaYuan Flea Market, Chaoyang District, Beijing (3) History of Panjiayuan Market. By China Report.com

That is, in the old dynastic Capital of the past, many markets started from very humble beginnings, often near Temples or derived from Temple Fairs. Yet others just simply started in convenient "along the way" points as can still be told from some of the names of the Hutong found in the nner City. Famous "Hutong" Market Streets were Gaoyou Hutong or Pearl Market Lane (in Zhushikou, Chongwen District), Ximi Hutong or Fine Rice Lane, Lanmian Hutong famed for its "mushi" noodle stalls, sticky rice west and east lanes - Xi- and Dong Jiangmi Xian and many others with prozaic names designating the quality product to be found there at that location.

Famous historic Markets of the Imperial Capital were the Dong'An Market that served the Forbidden City and is now famous as the

Still in living memory, in the beginning of the 20th Century there was the "Thieves market" (Now Hongqiao (Red Bridge) Market Building) found well outside the city walls, and the "Russian Market" which had come to blossom after an influx of Russians and Cossacks populated the towns east of the city in the aftermath of the 1917 A.D. Russian Revolution. In the old Imperial City, markets dominated city life and many other markets which shall remain unnamed were strewn throughout the city catering to its citizens daily needs. Yet other markets catered entirely to the needs of the many camel caravans that once assembled outside the city walls, would be heading back into the Provinces, or travel via Inner-Mongolia into Central Asia.

Beijing was a thriving market city and this situation stayed much the same throughout the 20th century and would only be changed by the

advent of the Peoples Republic of China and the introduction of a Communist System.

That is, for many in China the coming of Communism meant the end of a lifestyle and culture, and so it was for Beijing and its many markets and other traditions.

It would go too far to review the entire political development of the Peoples Republic of China and history of the Reign of "New Emperor" Mao Zedong here, but in essence: "True Communism" excluded the possibility for Capitalist markets and thus gradually, all parts of the free, non-State Enterpise economy were shut down throughout the nation. Capitalists were declared official enemies of the State, and persecuted throughout several waves of political "class struggle". Anyone even related or befriended to a "Capitalist" (former owners of Capital by then) was shunned from society, persecuted -often by close friends and neighbors, or suffering worse. As a result, by the time of about the year 1958 the National Doctrine of Communism and "Maoism" had forced the markets out of sight. The only remaining markets, if one may call them that, were the black markets. And even that was a highly risky undertaking. Bartering was much more common.

Especially, during the mass collectivation drives and the Cultural Revolution Era (1966 A.D. - 1976 A.D.) all markets, seen as the pinacles of Capitalism, were closed and banned. Anyone who would have suggested otherwise would likely have found himself labeled "a rightist" and without repent usually wound up in "reform through labor".

Thus, no markets operated in Beijing between 1966 and around the year 1982, with not even the lively hutong lane markets to cater to some of the daily needs of the people. At the same time, foods were rationed throughout China, even in the Capital City, and no one, except the well connected, could get more than their assigned "share".

During what was supposed to be the highpoint of the Mao Zedong Era, which should have arrived with the efforts expanded in the "Great Leap

Forward" (1958 - 61), many suffered from famine, and oedema born from malnutrition was a common disease. As described by those who lived in the city of Beijing during the times leading up to Mao Zedong's death, such as Mao's personal physician Dr. Li Zhisui, it was bleak existence and the common folk appeared on the streets less and less, apathic due to malnutrition. While most forms of music and non-revolutionary art and entertainment were banned, - except for the legendarily boring 8 master pieces of Revolutionary Opera - notoriously the Cultural Revolution came with the destruction all things old, including countless priceless antiques of all varieties. In this Era Politics took a giant bite out

To get back to the history of Panjiayuan Market; Panjiayuan therefor is not one of Beijing's historic markets and due to the success of Communism in China and the subsequent ban on markets anywhere in the nation, its history is but brief. Panjiayuan is an entirely new market which has arisen after the death of "Chairman Mao" in 1976, and as such is one of the rare gems that appeared during the rule of Deng Xiaoping (1978 - 87 or 92), when - gradually and slowly - economic reforms were introduced and eventually markets were allowed to reappear in the streets.

Reforming the destitude Chinese Economy would not be an easy task, in fact, it would take many years. And for important political reasons, reforms would not start in the big cities at all, but far away from the public eye, so no one would take too much notion of it. To be exact, the first reforms were born out of a "revolt" in the hunger stricken country-side of Anhui Province in 1978, where farmers forced into change by total starvation organized a first "Capitalist Coup". Or, that is surely how Mao Zedong and similar hardliners would have interpreted it. They refused to remain working in the communes and instead divided land among families which worked the land independently but supported eachother in the struggle against total collectivism, which had dropped the agricultural output.

The first of all reforms came to the agricultural system of China, not industry or commerce, and it abolished the collective farming methods of "The Great Leap Forward" for a ploy that was and is known as the "household responsibility sytem". In short summary, the farmers still had to deliver a grain quotum to the central Government but any surplus they produced, could be sold on the private market.

Of course, this was are turn to a Capitalist system on a grass-roots level, however as Deng famously stated, he did not not care if a cat was white or black, as long as it caught the mouse. Deng's purpose was to appease the people by giving them back a livelihood and a means to feed and support themselves, a move that in turn would allow the Communist Party to regain credibility and himself to solidify his position as the popular new Emperor and allow him to become the de facto successor of Mao Zedong.

Long after this first reorganization of the agricultural economy came the time to modernize other sectors of the economy. Now internationally famous is the small fisherman's village of Shenzhen near Hong Kong, which in a few short years became the experimental hub for free market experiments and a gateway for foreign trade. Shenzhen too was an out of the way and out of the public eye place especially selected for this reason so there would be less disruption of the general lifestyle still prevailing in most of the nation.

It was only after the victory of Deng Xiaoping over more conservative hardliners within the Central Government and his final solidying of power as the undisputed Central Figure within the leading Communist Party that it was at all possible for markets to be openly allowed back on the streets. As a signal of the complete power of Deng Xiaoping, for the first time markets could be and were allowed to be seen in Beijing the Capital itself. Private iniatives, farmers markets and an entirely new way of thinking were set to sweep the nation.

At first, markets were only meant for the common people and were introduced as a means needed in order to increase their livelyhoods. Markets, although gradually allowed, were still kept out of site, especially in such a showcase city as the Capital Beijing.

Thus, at some time during the 1980's, started the Panjiayuan Market an open market conveniently located yet mostly out of sight of any foreign visitors to the City. As with its sister market, the Silk Alley (Xiushui Street) more to the north in the Chaoyang District, Panjiayuan was among the first markets to be opened and allowed to prosper.

At first known as the 'ghost market', a name which openly refered to the black market nature of the business conducted there, the Panjiayuan is a market founded by the local peasantry who, as opportunity was given, were the first to market their wares on this spot. And they did so literally. The market was an open field adjacent some dilapidated hutong where people freighted their goods, selling them out of sight of any visible police. Due to its still doubtful nature however, the market was only open for a few hours each day. Thankful for the given blessings the people remained weary, knowing out of experience that the political climate may turn about at any time, resulting in a crackdown and closure of the market.

As word of the new opportunities spread throughout a city devout of modern stores

and outlets, Panjiayuan soon grew immensely popular. During the first years open only on the weekends, people from far and wide would flock to Panjiayuan to either buy, or sell what they could to make a small profit. Anything would be offered, from the useless to the useful. For whatever price one was willing to give. The popular products in the early time however were farms produce, foods and household items that had been in short supply for decades. Panjiayuan was a blessing to the people who finally could buy the things they needed, or sell in order to make ends meet. Only secondary to that was the market for textiles and prints, as slowly fashion began to change and colorful skirts and dresses were returning to daily life.

Meanwhile, with the growing demand came the first scams. It during this time that the first fake antiques arrived, purported to have been dug up their farmer owners and were now up for sale as Antiques. That was a another beginning and the first time Panjiayuan became known as a source of "antiques".

By around 1990 Panjiayuan had become a resounding success and the original site, an empty lot between the narrow hutong lanes became so crowded that it "burst its banks". As a result of the success the Traders expanded their operations to a small nearby forest grove underneath Panjiayuan Road Bridge, selling their antiques and other wares among the trees. This was the time when Panjiayuan gained its literal name as the 'Dirt Market' and was also when the market was first noticed by foreigners, who soon joined in the Frey to try and find junk collectable's for their collections. Popular wares of the day were numerous, such as Cultural Revolution posters and memorabilia, old pins of the party, old coins, stamps and books, and of course the much desired "antiques" even though such a thing should be considered rare in China. The first foreigners were embassy staffers, well informed expats and of course various flying personnel from all over the globe. While they came to make their own little scores the foreigners conveniently relayed the news about the remarkable changes ongoing in China, and the newfound liberties of the People. After news of the existence of the Silk Market and a bit later the Panjiayuan market reached the pages of world newspapers and magazines, the market became increasingly popular among visiting foreign tourists.

Naturally, local Police tried to prevent the mostly illegal and dubious trade in antiques, however it failed dismally. Trade and the Market had to go on, and thus the antiques hawkers kept sneaking back in. Unable to change the situation without closing the market, the local Government then decided to regulate all of it. In 1994 the trade in art at Panjiayuan and the organizing of auctions were legalized, making Panjiayuan an official antiques market for the first time.

Subsequently, in 1995 the market, now well established and fully accepted by the City Government, was moved from its original location in the hutong of Pan Family (Clan) Hutong to the current site at Panjiayuan Road.

After a little more than 10 years of success and astounding success, the market of Panjiayuan had definitely grown to be one of the cities new "institutes". As a result, it received the official title of "Beijing Folk Culture Market" in 2002.

Around the year 2005 well in advance of the Beijing Olympics, the entire site was re-planned and overhauled as part of the larger face change of the city. Where Panjiayuan gained its reputation as a spontanious peoples' market thrown in the open air an even field, the new market fit for the modernized city was thought to be a giant paved walled enclosure, inside of which are various small "districts" of alligned shops, as well as a giant hall reserved for the weekend activities.

Beijing Panjiayuan Folk Culture Market, biggest "bazaar" in Beijing.