Several months ago, Empire Nation Fish and Chips left the Nanluoguxiang Street, followed by the Mirch Masala Indian restaurant. And now, the Saveurs de Core restaurant has announced that it too will move from the Nanluoguxiang once its lease expires.

All three restaurants cited soaring rents as the main reason for moving.

The departure of Saveurs de Core is especially unfortunate. It is one of the very best Korean restaurants in Beijing and boasts an upstairs dining terrace with a great view of the surrounding hutong alleys and siheyuan houses. Moreover, the restaurant was always very busy.

If Saveurs de Core cannot make it on the Nanluoguxiang, then one has wonder about the viability of the street's other retail and dining establishments.

Finally, if the so-called "Beijing Time Cultural City" Gulou Redevelopment Project goes ahead, bigger name foreign retailers will probably force out the remaining smaller stores on Nanluoguxiang, as has happened with the Qianmen Redevelopment Project.

That would be too bad, because the street's charm is defined by its funky clothing stores, galleries and other shops, particularly the DVD store specializing in older, classic Chinese and non-Chinese films.

But while I will mourn the Nanluoguxiang's passing, I am heartened by how the Guozijian area is now rapidly emerging to take its place as Beijing's new dining, entertainment and shopping hot spot.

These two places have much in common. Both are near old Beijing landmarks - the Drum and Bell Towers (Nanluoguxiang) and Lama and Confucian temples (Guozijian). And both are home to a dense concentration of hutong and old siheyuan houses, many of which date back to the Ming and Qing dynasties.

With its colorful arches and sidewalks lined with old and shady trees, the Guozijian has always been a pleasant place to stroll around. Recently, scores of good cafs have set up shop there. My favorite is the Caf Confucius, just beyond the Confucian Temple. Its comfortable chairs, great view of the street and 28-yuan breakfast make it a terrific place to linger on a weekend morning and do some people-watching.

In addition to the cafs, the Guozijian has a number of interesting shops, including the "Lost and Found" store, with its old-style Chinese typewriter. Whenever foreign friends visit me, I take them there. The street is also home to one of Beijing's best old-style Chinese teahouses.

However, the most striking new development in the Guozijian area is the recent transformation of the nearby Wudaoying hutong. With its excellent new restaurants, bars and cafs, the Wudaoying hutong is rapidly becoming the new Nanluoguxiang.

One of these dining establishments, Argo, along with the just-opened Sand Pebbles Bar, has rooftop terraces and having a drink or dinner there is much like relaxing at Saveurs de Core and the 16mm Bar on the Nanluoguxiang.

In addition to the restaurants, bars and cafs, a number of small and interesting clothing boutiques have opened there, as well as a live jazz venue - the VA Jazz Club.

The Guozijian's still numerous hutong alleys are great places to walk in and observe ordinary Chinese people working and relaxing. When I lived on the Dongzhimenbeixiaojie, I loved walking through the hutong alleys east of the Lama Temple and north of the Guijie on my way to Caf Confucius for breakfast.

Moreover, every time I explore this area, I find something new. Recent discoveries include the cluster of Yunnan restaurants, cafs and live music venue at the 46 Fangjia hutong and the small bakery on a north-south hutong connecting the Guozijian and Wudaoying hutong. The latter has a good selection of reasonably priced bread and cheese. When I asked the boss why they had set up shop there, she replied that many French expatriates now live in the surrounding siheyuan.

Finally, many different kinds of inexpensive and good neighborhood Chinese restaurants line the nearby Andingmen Neijie, which is also home to another new live music venue, the Gingko Caf.

And one of Beijing's best live music venues, featuring indie rock and roll, Yugong Yishan, is just down the street, near the Zhangzizhong subway station.

One of the great things about Beijing is the way in which new dining and entertainment suddenly and unexpectedly emerge from nowhere. Let's hope the Guozijian area escapes the fate of Nanluoguxiang and doesn't become a victim of its success. And let's also hope this area never undergoes "redevelopment".