A senior U.S. trade official Wednesday in Shanghai praised Shanghai's closure of a market noted for cheap fake brand goods.

The Xiangyang Road market, a downtown outdoor bazaar, was closed at the order of the Shanghai municipal government on June 30.

U.S. Under Secretary of Commerce for International Trade Franklin Lavin, who is visiting China from July 25 to 31 as guest of the Ministry of Commerce, said the closure showed that central and local governments have strengthened protection of intellectual property rights.

Hu Yanzhao, vice mayor of Shanghai, said the authorities have realized the importance of protecting intellectual property rights and the central government is legislating to create a better market environment.

The municipal government would set up a hotline for the public to report cases of intellectual property rights infringements and launch a crackdown on illegal audio and video products, Hu said.

The city's industrial and commercial authorities have taken actions in the past, including posting notices forbidding the sale of fake brand names and confiscating pirated goods.

The Xiangyang Road market, located off the main Huaihai Road, attracted both foreign and Chinese shoppers looking for deals on counterfeit goods of up-market brands such as Louis Vuitton, Hermes, Chanel and Prada.

The market has about 800 shops and an annual trade volume of more than 400 million yuan (some 50 million U.S. dollars).

Source: Xinhua