The Xiushui market, as it is referred to by Chinese, is one of Beijing's most popular tourist destinations, drawing crowds of up to 20,000 people at weekends to search out cheap fake designer shoes, coats and bags.

But its fate has been under a cloud since authorities decided the narrow thoroughfare was a fire risk.

A decision now appears to be have been made to knock it down, the China Daily said, although an exact date for the demolition has not been set.

The paper said the area where the market is located, near the equally famous Friendship Store which is itself under threat of closure, will be turned into a street to ease the increasingly grindlocked traffic along Chang'an Avenue.

According to the paper, it will be moved to a new indoor building over eight stories that can accomodate 1,000 stalls.

While one of China's commitments to the World Trade Organization was to crackdown on intellectual property rights abuses, places like the Silk Market continue to thrive.