Not one month ago, an article printed in Art and Auction magazine reported China topping Britain to become the second largest art market in the world. Since then, Artprice, the world leader in art market information crunched numbers of auction house sales from all over the world and declared China number one. "This unprecedented news represents a turning point in the history of the global art market," said Thierry Ehrmann, founder and CEO of Artprice. According to the study, 2010 shows that China accounted for 33 percent of global fine art sales whereas the U.S. came in at 30 percent.

Liu Ye, Bright Road, oil and acrylic on canvas, 170cm x 200cm sold at Sotheby's for $2.88 million in spring 2010 

It was just four years ago in 2007 that China nudged its way into 3rd place, overtaking France whos global auction house revenue last year came in at 5 percent. "The period from 2008 through 2010 has been one of crisis and recovery for the market for art and antiques," said a report commissioned by the European Fine Art Foundation. "Luxury spending contracted sharply in many countries during 2009, however 2010 brought the first signs of economic recovery with a rebound in consumer confidence and with Chinese consumers driving growth in many luxury sectors."

The report also stated that the Chinese art market had doubled in 2010 alone. The contemporary market remained consistent in that trend with contemporary pieces at a median price of over $180k, also double what they were in spring of the same year. The artists most popular with Western buyers have had the most longevity in the auction houses, showing that even as Asian collectors reshape the market, the taste of Western collectors will remain important. Jerome Sanz, director of the Ullens Center of Contemporary Art said, "What we see is... relatively low entry prices for contemporary art allowing for great returns; they also have the intellecturally satisfying benefit of allowing collectors to discover a realm that is relatively unknown in the art world with little cash down." 

Art market observers were stunned last November when a Qing Dynasty vase was sold at Bainbridges in the UK for $85.9 million, almost 50 times its high estimate of $1.9 million. The sale sets the record for a Chinese work of art from any period. Experts say the value of the piece being pushed to that price point represents "a perfect storm of new money, national pride, and historical cachet."

Qing Dynasty, Qianlong-period porcelain vase, 18th century

The incredible wealth that has been generated by China's economy has combined with a strong sense of patriotism and the country seeking to rewrite the rules on valuing Chinese artworks. ArtTactic's newest report on the Chinese market confirms that it's in the middle of a "second boom." Unlike the first boom which lost steam in the wake of the global financial crisis, the shifting trends and rising prices are now being driven by mainland Chinese collectors rather than Westerners who sought an early piece of the action which boosted the Chinese art market initially. The value of the global art and antique market shot up 52 percent between 2009 and 2010, marking a very significant recovery.

Contemporary Chinese porcelain: Li Lihong, McDonald's Blue Dragon in Clouds, Yellow, 2007

Chinese today are seeking meaning from their rich and varied culture which includes a broad historical spectrum. In turn, the government is promoting the development of the country's contemporary art enterprise. Contemporary pieces can be transported in and out of the country freely, so collectors are not restricted to trading Chinese art not just in China. Artists such as Zhao Kailin, Wang Niandong, or Hu Jun Di have enjoyed a lot of success both in China and the West, and these established emerging painters' work is currently at a price point that is relatively approachable for both beginning and experienced collectors. As China continues to become a larger player in the world economy, it will undoubtedly continue to mirror and growing appreciation and interest in both contemporary masters and ancient treasures like the Qianlong Vase.