China's evolving art industry

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Josh Bateman, Cassone's new reporter on the Asian art scene, writes on China's growing art market

In 2011, a painting by Zhang Xiaogang set a Chinese contemporary art record when it sold for more than $10 million.  Not only has the higher end of the market experienced growth, but there also are efforts developing China's art scene across all socioeconomic demographics.  There are government and grassroots initiatives enabling more people to learn about, appreciate and buy art. 

Maturing market in Hong Kong

As the third-largest auction market behind London and New York, Hong Kong continues to play an increasingly large role in the global art scene.  This is evidenced by a number of Western galleries, such as Gagosian Gallery, Galerie Perrotin, and White Cube, which have opened offices there over the last few years. 

One of the first Western galleries with a presence in Hong Kong was Christie's, which make a joint venture in 1989 with Swire.  Today, Christie's is a market leader and is benefiting from China's growth.  In 2002, Christie's first auction on 20th-century Chinese art had 45 pieces.  By 2013, Christie's four sales of ‘Asian 20th Century & Contemporary Art’ had more than 680 pieces and sold more than 91% by value.  The Greater China region continues to play an increasing role in contributing to Christie's revenue.

Anthony Lin, founder of Anthony Lin Art, buyer for The Fine Art Fund Group and former Chairman of Christie’s Asia, said: ‘we have seen new buyers entering the market last year and this. That is more meaningful than the dollar measure as new buyers are the growth drivers.’

Christie's also recognized the importance of investing for the long term in mainland China.  The firm first opened a representative office in Shanghai in 1994.  This long-term view paid off as it will host an inaugural auction in Shanghai later this year, becoming the first international fine art auction company to operate independently in mainland China.

Museums of Shanghai

Another sign that the art scene is flourishing in China is the increase in the number of museums.  According to news agency NPR, China has opened approximately 100 new museums annually over the last few years.  That number peaked at just under 400 in 2011. 

Recently, numerous art museums have opened in Shanghai.  Capitalizing on existing infrastructure after the conclusion of ‘Expo 2010 Shanghai China’, the China Art Museum and the Power Station of Art both opened in 2012.  Combined, they have almost 800,000 square feet of exhibition space.

The Power Station of Art hosts exhibits of domestic and international artists.  In April, the museum opened an Andy Warhol exhibition as well as one showcasing the works of  Angelique Shidi, a contemporary Chinese artist from Hangzhou.

Other new museums introducing locals and foreigners to art include the Minsheng Art Museum, ShangART Taopu Warehouse, and the Rockbound Art Museum, which all opened in 2010.  Located in the Bund area, the Rockbound Art Museum ‘dedicates its efforts to the study, exchange and promotion of contemporary visual arts’.

There also are individuals operating museums in China.  Chinese billionaires Liu Yiqian and Wang Wei opened the Dragon Museum, China's largest private art museum, in late 2012.  On a smaller scale, in a basement of a residential community, is the Shanghai Propaganda Poster Art Center.  It is a private museum founded by Yang Pei Ming.  The museum is three rooms and has more than 6,000 Chinese propaganda posters from the 1940s–90s.

The focus is not just on art; the role museum architecture plays in society is also considered.  In May, the Power Station of Art opened an exhibition titled ‘12 Presentations of Contemporary Museum Architecture in China’.  The goal of the exhibition is to ‘explore new methods to investigate the social, cultural, and political transformation underlying the quantitative expansion, such as construction and usage, public and private, representation and observation, event and daily life’.

New distribution channel in Beijing

Beijing is also experiencing an increase in the appreciation of art.  An hour outside Beijing lies the Songzhuang art village. Songzhuang provides affordable living and an inspiring environment for as many as 10,000 artists who live there.  Compared with Beijing proper, Songzhuang has less pollution, a slower pace of life and natural surroundings.  Some of the established artists who have worked in Songzhuang include Yue Minjun, Fang Lijun and Yang Shaobin.

Today, one of the most instrumental people in Songzhuang is Lina Elder.  Elder said: ‘Songzhuang makes people happy. Like a heaven for artists.  Like a hope, a wish...a place to think, work and meet friends freely’.   Lina has spent years living in Russia, the UK, France and Belgium. She has studied art, languages, philosophy, anthropology and traditional Chinese medicine.  Her diverse background gives her a unique perspective, enabling her to help propel the Beijing art scene forward.

Lina is now one of the players making it possible for Chinese artists to eke out a living.  She helps manage and is the auctioneer at the Songzhuang Art Auction.  This holds auctions twice a day on Saturdays and Sundays.  It is approaching its hundredth auction for the summer and sell approximately 350 pieces of art in a weekend.  An average piece sells for approximately $30.  The auction is a cooperative effort where everyone – buyers, artists, volunteers, the entrepreneur and the auctioneer – plays a role in bringing art to others. 

According to Lina, profit is not the most important concern at the auction.  And the market is not perfectly efficient; there are times when an art piece sells for less than the price of the frame.  Lina said pieces by well-known local and international artists have sold for one-tenth or less of the their market value compared with what they would sell for in traditional distribution channels. 

Although the auction is still evolving, it is improving the lives of artists and buyers.  Before it existed, artists had few distribution outlets.  Even if they are not getting full value, the auction gives artists an opportunity to earn a living, which otherwise might not be possible.  It also makes it possible for a rising middle class to learn about and buy affordable art.  Lina said: ‘the charm of this activity [the auction] is about the middle class.  Before, it was too expensive.  Now, you can buy art without breaking the budget. It's very humane. Art really shouldn't be so expensive’.

The Nanjing artists

The art scene is not exclusively in China's largest cities.  In Nanjing, China's former capital, there is a smaller but meaningful art presence. 

Peter Huang has built an art sanctuary in bustling Nanjing, a city of 8 million people.  There is little focus on trying to monetize the art at his studio, the Nanjing Drug Art museum, which he opened in 2007.  He says, ‘art is kind of a weapon against problems existing in society...art is the drug for healing’.

Between Nanjing and Beijing, the Drug Art Museum holds five or six exhibitions a year.  It exhibits a mix of Chinese and international artists.  According to Peter, these exhibitions don't ‘just exhibit art.  People come here and enjoy life.  Everyone can be an artist.  It's drinking, talking, dancing, listening to music, compiled together. A lifestyle’.

Peter's philosophy on art is similarto that of Niells Niemeijer, a dutch artist who works at Peter's studio and  now spends time in both China and Holland.  Niells came to China last year to work on a sculpture and ended up staying.  He said, ‘I'm not here to make money, I want food, a house to sleep in and pocket money’. Talking about what it is like to work in China, he said ‘everything starts with a meal.  Everything is an adventure’.

The future of China and art

China's art industry has evolved significantly over the last 10 years.  It does have a number of challenges including market manipulation, price volatility and fraud cases.  According to Anthony Lin, ‘a lot of what goes on would not bear scrutiny in the US and Europe as far as best practices and governance are concerned’. 

Nonetheless, when taking a long-term view, China's art industry expansion is expected to continue.  New revenue records are being achieved, new museums opened, new distribution channels created and new artist environments developed to develop China's art scene further and increase its global influence.