The First China International Gallery Exposition (CIGE) will be held at the China International Science and Technology Exposition Center in Beijing from April 22 through 26. Some 80 percent of the participants are foreign galleries, clearly demonstrating that the China art market has gone global.

Dong Mengyang, executive director of the CIGE, says that 21 Korean and 15 Japanese galleries, many of them magnate art brokers of Asia, will be taking part in the event. Influential participants from Taiwan include the Lin & Keng Gallery, Asiart Center and Eslite Gallery. The mainland’s renowned Shanghart Gallery, Red Gate Gallery, Soko International Art Corporation and Courtyard Gallery will also be making their presence felt. All in all, nearly 100 excellent galleries will display their masterworks at the exposition.

The majority of those attending are from Asia. Dong explains that this is because Asian galleries learned about the expo earlier and registered as early as last year. Many of the galleries from Europe and the United States that were eager to participate had to be turned down because of the limited space. Nevertheless, they expressed continued interest and hopes to take part in the next such event.

Why are so many overseas galleries, especially those in Japan and Korea, so interested in the still-budding Chinese art market? Dong says that they want to find out the actual situation here in light of the rapid development of the economy. It could be risky to open a branch here, so these galleries will use the expo to learn more about art consumption in China. They also hope to make contact with Chinese artists directly, as contemporary artists are starting to build international reputations.

Zhang Mingfang of the Aura Gallery in Shanghai, a participant in the expo, believes that overseas galleries will cross the threshold into China even if the market is miniscule at the start. He also thinks that the interest of the Japan galleries is typical of all Japanese business: domestic territory is limited, so companies set their sights on overseas markets. Art galleries are no exception.

Chinese art market immature

Art consumption and prices on the Chinese mainland still lag behind much of the world. Dong Mengyang believes there are several reasons for this.

The country’s traditional art dealers have a well-established system, and connoisseurs of domestic art have established consumption patterns going back thousands of years. It is difficult to break these patterns.

Moreover, an imperfect broker system and immature agencies mean that good contemporary art tends to be recognized by overseas collectors rather than those at home.

Finally, despite the economic growth of the past 20 years or so, the average citizen hasn’t reached the level of wealth required to buy artwork. This has resulted in a wide gap between the prices of Chinese art and that of Europe, America or Japan. For example, a Vincent van Gogh is worth up to US$80 million on the world market. But Lotus, Ink and Color on Paper by Zhang Daqian (or Chang Da-chian), the most expensive piece of modern art in China, is valued at only HK$22 million (US$2.8 million). Yan Shan Ming, a Song dynasty calligraphic work by Mi Fu (1051-1107), was auctioned for an unprecedented 29.9 million yuan (US$3.6 million) last year. Still, that is only 1/30 the value of a Van Gogh masterpiece.

To encourage foreign galleries to explore the Chinese market through the expo, the organizing committee gave substantial discounts on booth prices. It also offered such services as food and accommodation, a general introduction of domestic contemporary art and assurances of media coverage.

Japanese galleries pay about US$500,000 each to exhibit at the world-famous Basel art exposition in Switzerland, but most of them find that sales easily cover costs and bring in profit. That sort of commercial success is virtually impossible in China now, so the expo organizing committee is creating an opportunity to establish links with some of the world’s leading art brokers.

Domestic galleries still novices

Most Chinese gallery operators are from art schools and have little management experience.

They also lack the backing of international syndicates, which most major overseas galleries enjoy. For instance, the Hyundai Gallery of South Korea is a subsidiary of the huge Hyundai Group. Few Chinese galleries are able to find sponsors.

Zhang Mingfang says this is the first time that he is taking part in an expo in Beijing. He has rented two booths, where he will display some works of Hong Lei and Han Lei, two mainland photographers. Zhang hopes to make contacts with some of the overseas galleries.

Experience has taught him a lesson about displays. Many Chinese galleries hang as many of their collections as they can cram into the booth, which makes the place look like a supermarket. Foreign agencies, by contrast, only show their best works to avoid destroying the whole effect.

Some domestic art brokers worry that an influx of Japanese and South Korean galleries will hurt the domestic ones and ultimately lead to the decline of China’s own gallery industry.

But Zhang sees it differently. Japanese and South Korean galleries, although they are getting into the market on the ground floor, have no greater advantage than China in art management and artist packaging and marketing. Only by allowing the entry of world-class galleries can Chinese art brokers themselves improve.

(China.org.cn translated by Li Jinhui, April 5, 2004)