The place is called 798. It is a factory with dozens of warehouses. The name doesn't mean anything but only a series number in the Red Days when 'the whole nation is a chessboard' of Mao Zedong. You can even find Factory 797 or something similar nearby. In those days China tend to have a preference of name public facilities in series numbers. In Beijing they have No.1 No.2 high school and the order didn't stop even it knocked No.101. (No.101 High School is actually a good one. It locates at the corner of the site of the Old Summer Palace, which is burned by British and French troops during the Second Opium War.)
Factory 798 or 798 Art Zone is what this place is famous as. Wikipedia told me technically 798 only refers to one of the complex within this factory. It became so famous that even the most conservative English text books in China from People's Education Press contained an artical about it.
I don't want to go through the history about this place because Wikipedia provides more information than you need. I've been to 798 only twice, not much compared to thousands of artists who live there and hundreds of thousands of Artsy Youth (文艺青年，简称文青) who consider 798 as their Mecca (no offending to muslims). However I'd love to share some experience of my visit.
So the ideal time to visit 798 is a dusted and polluted weekend in Beijing which is dusted and polluted as any other usual weekend. The Beijing Bus Company apparently didn't appeal to the popularity of 798 therefore only less than 3 bus lines were operated in that areas. Or maybe they are in a secret treaty with 798 authority which encourages more people arrive there by car or taxi, in this way they can purify their audience by how much they earn and want to spend.Otherwise you have to spend hours in transiting metros, lightrails and buses.
798 contains of graffiti and sculptures, most of which are political pop themed. They reflecte the crazy old days and examine the spirit and soul of the captilism-lized communism China. There was a painting in 798. The background was Tiananmen square, the policital centre of Red China. There were a group of figures, eyes covered, dreamwalked randomly on the square under the portait of Mao Zedong. The meaning was obviously. There was a sculpture. A naked kid was standing, with eyes covered by a pair of red palms.
Critics complained that such artistic were created in favour of 'International anti-China Sentiment. However government didn't ban them at all.
There are also several permanent exhibitions in 798. The famous one is the Nike Factory. Nike is the top sports brand in China and is the symbol of the youth lifestyle. The young Chinese city kids are proud of their Nike sneakers and other outfits. Nike launched in China with the help of the image of Michael Jordan. When I went to 798 there was a special exhibition in Nike Factory about the all the Jordan basketball shoes Nike made. A typical pair Jordan basketball shoes costs about ￥1,000, while the average income in China nationwide is ￥2435.75/month in 2008. （Data from National Bureau of Statistics of China) You now know why Nike is pursued by Chinese city kids.
Another one is UCCA Ullens Center for Contemporary Art. I don't know much about it.
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