The art auction market in China: a legal and operational overview

Abstract

The present work aims at analyzing the legal framework of today’s art auction market in China, focusing on the main provisions that regulate domestic and foreign auction businesses. In 1996, the Auction Law of the PRC was issued, and in the following years, several complementary measures were published, contributing to the standardization of the auction market. However, unlike other leading markets, the Chinese one has only grown in the last 30 years. The speed of its development has not allowed for the establishment of solid foundations, so that even today several problems persist in the Chinese auction market. The dissertation is divided into three chapters. Chapter one will provide an analysis of the Auction Law of the PRC and its complementary measures. Chapter two will focus on the defect disclaimer clause (Auction Law, Article 61, paragraph 2). Such provision is used by many auction houses for illicit actions in order to gain higher profits. It is one of the main causes that have led to the spread of serious issues plaguing the auction market in China, such as delays and defaults in payment, as well as the connected rampant circulation of fakes. Finally, chapter three will analyze the regulatory landscape governing foreign investments in the auction sector in the mainland. It will provide an examination of the forms of presence and collaboration employed by international auction houses in approaching the Chinese auction market.