There's a very nice yarn shop in the Dongcheng District of Beijing - Wansha Cashmere Store. They carried a wide range of fibers including acrylics, wool, angora, camel, and cashmere. They sell buttons and needles as well as finished garments - even offering custom-made garments given enough time. Knitting is very popular here and there are numerous yarn shops to choose from. It is good to see the familiarity of a local yarn shop and remember that knitting and crocheting offers a universal language.