Beijing Culture Free Port poised for art market

European antique clocks are also on display.[Photo by Jiang Dong/China Daily]

Wang says Beijing is a traditional buyers' center. "Beijing has buyers while Shanghai has more collectors. Beijing is more like a trade market. That's why we positioned the free port to be a trade center for art," Wang explains.

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The first duty free area for art was set up in the Shanghai Free Trade Zone in September 2013. Beijing and Shenzhen are the only other cities to receive approval for similar areas from the Ministry of Culture.

Beijing's free port is the only one in China that allows foreign investors to set up art businesses without any limitations. "Under the new regulation, foreign investment can come in directly. The US and European galleries can hold shows, and sell and buy art in Beijing without any agents," says Li Danyang, general manager of Gehua Culture Development Group.

Gehua operates the free port and, along with the local government, provides funding. Li says the free port's art center will welcome dealers who trade in classical art but must be cautious when dealing with contemporary art dealers because of the content of art.

Gehua also operates a protection and repair center for art, working with the State Administration of Culture Heritage and Beijing Municipal Administration of Culture Heritage.

It aims to repair Chinese art and relics that come from foreign countries. Experts from museums across China will fix such precious treasures without charging import duties.

The Beijing Culture Free Port aims to attract art dealers who have traditionally gone to Hong Kong and Singapore because of their tax-free policies. But experts say it will take time to see if it will work.