CREATINGANDSUSTAININGVALUEINTHESHANGHAIARTSECOLOGYProfessorVictoriaWalsh,RoyalCollegeofArt(August2019)AreportfortheAHRC/RCAfundedproject‘ArtFairInnovations’

teamLab,‘UniverseofWaterParticlesintheTank’,installationshot,July2019SUMMARYEstablishedin2014theWestBundArtandDesignFairisakeymemberthenascentartsecologyofShanghai.TheartsecologyofShanghaimaybeunderstoodtobeatanimportantjunctureasitlooksnotonlytomaintainitscurrentlevelofeconomicsuccessandinternationalprofile,butalsohowtosustainanddevelopitinthefuture.Unburdenedbyhistoricalprecedentsandinstitutionalnormsofpractice,Shanghai’sartfairs,museumsandgallerieshaveanexceptionalopportunitytocreatenewmodelsandorganisationsembeddedinthe21st

century,notthepre-digital20thcentury.CreatingandsustainingvalueintheWestBundArtandDesignFar,andtheShanghaiartsecology,presentschallengesbutsignificantopportunitiesinrelationtonewtechnologiesofcommunication,audienceengagementandculturalproduction.

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WestBundwebsite:http://www.westbund.com/en/ARTFAIRINNOVATIONS(AFI)ArtFairInnovations(AFI)wasasix-monthsproject(Feb-July2019)fundedaspartoftheArtsandHumanitiesResearchCouncil’sstrategicUK-ChinaCreativeIndustriesPartnershipDevelopmentGrantprogramme,withaspecificfocusonShanghai.TheaimoftheAHRCdevelopmentgrantswas ‘to provide a platform for the initiation / enhancement of research-industry partnerships between theUKandChinawithaviewtolarger,longer-termcollaboration.’TheAFIprojectwasbasedonprovidingadeeperunderstandingofopportunitiesandissuesrelatingtotheWestBundArtandDesignFair(WBADF),oneofShanghai'smainartseventsandhadfivekeyobjectives,including:-‘tofacilitatethedevelopmentofShanghai’sWestBundArtandDesignFairbyprovidingdirectinsightsintocurrentpractice,includingwaysofcapitalisingon

unexploitedopportunitiesandmitigatingidentifiedrisks-toidentifyspecifictraininganddevelopmentneedsinShanghaimuseums,galleriesandartfairsthatwillsupportanenhancedunderstanding,engagementandexchangebetweencollectors,dealers,criticsandcuratorsinrelationtoacquisitiondevelopmentandcollectionformationSCOPEANDAPPROACHArtFairsarerecognisedtoplayasignificantroleintheglobalartmarketeconomyandcontemporaryartworldecology.SincetherapidexpansionoftheWesternartmarketinthe1980s,theneedtounderstandtheinter-relationbetweenthiseconomyandecologyhasbeenwidelyrecognisedinrelationtothesustainabilityofboth(Becker1984;vanMaanen 2009).Thishasgainedparticularmomentumoverthelastdecadesince

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Chinaenteredtheglobalartmarketasakeyplayer(Adam2014&2018;Ching2019;McAndrew2019).Shanghaihoststwomajorcontemporaryartfairs.TheWestBundArtandDesignFairwhichwasestablishedin2014,andArt021establishedin2013.AstheAFI/AHRCapplicationnoted,whileextensivequantitativedataexistsontheglobalartmarketandtheartfair,thereisalimitedamountofqualitativedata.IndiscussionwithAFI’spartners,theneedforbothquantitativeandqualitativedatatosupporttheroleoftheartfairinenhancingtheintegrationofthecontemporaryartworldecologywiththeartmarketeconomy,wasidentified.Thisreport,tobereadinconjunctionwiththethreeotherprojectreports(J.Cruz&Faust;E.Dare;P.Oakley)isbasedonseveninterviewswhichwereundertaken(15-20July2019)withkeystakeholdersintheShanghaicontemporaryartworld:LorenzHelbling,Director,ShanghArt(opened1996);ZhouTiehai,Director,WestBundArtandDesignFair(opened2014);DavidTung,DirectorShanghaiLisson(opened2019);SimonWang,Director,AntennaeSpace(founded2013);GongYan,Director,PowerStationofArt(opened2012);BaoYifeng,Co-director,Art021(opened2013);QiaoZhibing,Founder,TankMuseum(opened2019).WESTBUNDART&DESIGNFAIR(WBADF)ANDSHANGHAIARTSECOLOGYDespiteincreasingindustrydiscussionof‘artfairfatigue’(Girshovich,2018),ArtMarketReport(McAndrew2019)findingsfor2018confirmthattheartfaircontinuestobeavitalpartoftheartmarketeconomy.ArtfairswereparticularlyimportantinAsiawherebetween92-97%ofcollectorsfromHongKongandSingaporeboughtatfairs,withChinaholdingitspositionasthethirdlargestartmarketintheworldat19%.As

McAndrewalsonotesartfairsareincreasinglycoincidingandmatchingartbiennialsastoolsofurbanregeneration,tourismandcity-branding.In2018HongKongArtBaselattracted80,000visitors,FriezeLondon67,000,andWBADFandArt021combinedcross-Shanghai70,000.

WebsitepageWestBundArt&DesignFair:http://westbundshanghai.com/index.php/EnglishTheWestBundArtandDesignFairholdsakeypositionwithintheShanghaiartsecologyandwasinitiatedbytheWestBundGroupaspartofthebuildingandbrandingoftheWestBunddevelopmentareaasa‘culturalcorridor’,comprisingofmuseums(includingTankMuseum,theLongMuseum,YuzMuseum,SCOP,forthcomingPompidouCentre),andprivateandcommercialgalleries(includingQiaoSpaceandShanghArt).Whiletheculturalofferoftheareaisyearroundwithexhibitionsandprogramming,theWBADinNovembergeneratesaparticularlyinternationalaudiencethatmovesacrossthecityforArt021basedintheRockbundarea.TheShanghaiBiennial,initiatedin1996,generatesafurthercitywideinternationalaudience.QuantitativedataonWBADFsalesandvisitorfiguresalongsidetheproject’sinterviewshighlightthesignificantroleandcontributionofthecontemporaryartstoShanghai’sTier1city-positioning.Thiswasfurthercontextualized,however,bydiscussionsofbothpotentialopportunityandconcernaboutthesustainabilityandfutureoftheartsecologyandmarketeconomy.

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Valuing‘Creativity’Theculturalpolicyandagendatoshiftthetagof‘MadeinChina’to‘CreatedinChina’hashelpedfosterideasofindividualcreativity(ratherthancollectiveculturalproduction),andcreatemoresympatheticconditionsforthereceptionofcontemporaryChineseart.Althoughthereisatensioninstatepolicybetweenwhatisunderstoodas‘CulturalHeritage’(nationalculture)and‘creativeindustries’(western,mediatisedneo-liberalproduction),bycombiningthecategoriesofartanddesigntheWBADFnavigatesmanyofthesecontradictionsthroughcarefulselectionandcuration.AlthoughChinesecollectorsinthefirsttenyearsweremorecomfortablebuyingChinesemodernandcontemporaryart,theappetiteformoreinternational,experimentalartisexpandingasthemuseumandinternationalexhibitioncultureexpandsinShanghaiandChina,andsectorinvestorstravelmorewidelytootherartfairsandbiennales.WhileWBADhostsanimpressiverosterofinternationalgalleries,theincreasedofferofinternationalevent-basedartfairssuggeststheneedformoreinternationalpartnershipsandcollaborationstocontinuetoeffectivelycompeteintheglobalmarket.StabalisingthemarketAlthoughthevaluechainforcontemporaryartinShanghaiandChinaisdevelopingitisstillessentiallydefinedbyvariablemarketvalues,ratherthanassetvalueleavingtheartmarketpotentiallyvolatileandvulnerable.Theemphasisonartasinvestmentisnotsympathetictothecreationoflong-termcollections,whichwouldhelpestablishassetvalueandstabalisethemarket.Fortheartmarketandthecollector-basetostabalise,moretransparencyisneededattheleveloftransaction.Thissituationhasthepotentialtobesignificantlyimprovedbythecurrentrestructuringof

taxpoliciesaddinggreaterincentivetoindividualandcorporatecollectors.In2012importtaxandVATwasat24%,butin2019VATisat13%and1%importduty.Asaneweconomicupperclassemergeswantingtodiversifytheirassets,butarelackinginculturalcapital,contemporaryartisbeginningtoemergeasanattractiveoptionandinthisinstancetheartfairandrelatedgallerysystemhaveexcitingnewopportunitiestoexploit.Artistsarebeingencouragedbythenewtaxregulationstoopenstudiosastheirbusinessastheycannowmakesalesofupto1mUSD/6MRMBatanincometaxrateof6%.Thisisofimportantmotivationalvaluetomanymid-careerartists,althoughitmaypotentiallyalsoencouragebypassingthegallerysystem.‘StructuredUncertainty’DrawingonBreznitzandMurphree’sideaof‘structureduncertainty’developedinrelationtotheChineseITindustry,Keanemakestheobservationthatthis‘uncertaintyisever-presentbecauseofextensivecross-alliances,tangledmatricesofauthority,numerousorganisationslackinginstitutionalizationandstrongrelianceonpersonalauthorityandnetworkconsensus’(Keane22).Thisdescriptioncanbehelpfullytransposedhereaseveryinterviewhighlightedthechallengeofdevelopingstrategic,long-termplanning.Thislackofplanningwasunderstoodtomitigateagainstfinancialplanning;large-scalecollaborativeprojectsandcommissions,internationalpartnerships(workingtoverydifferentorganisationaltime-frames);internationalmediacampaigns;andaudiencedevelopment.ThecontingentaspectoftheShanghaiartsecologyWBADFislocatedinwasunderstoodasagiven,andasoneintervieweenoted,‘thisisverydifferenttotheBritishsituation,andareasonwhyalthoughShanghaiisimportantitwilltake

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25yearstomatchLondonorNewYork.Thinkingbeyondoneyearor18monthsisnotsomethingthathappens.’

QiaoSpace,WestBundArtDistrict

MUSEUMS-WITHORWITHOUTCOLLECTIONSTheChineseNationalCulturalHeritageAdministration'sworkplanfor2016-2020aimstohaveonemuseumforevery250,000peoplebuiltby2020.Alongsidethesenumberstherewasdiscussionacrosstheinterviewsaboutthepublicdebateofthe‘ghost’or‘orphan’museum;museums,oftenspectacularinscaleandarchitecture,butwithnocollection,content,andornovisitors.WhilemuseumsinShanghai,andparticularlythosealongtheWestBundculturalcorridordonotfallintothiscategory,allintervieweesassertedthevitalroleofmodernandcontemporaryartmuseumsintheShanghaiartsecologyintermsoffosteringandvalidatingcreativeproduction,supportingdistributionandenablingeducatedconsumptioninadditiontoraisingthefollowingpoints.Mixedeconomies-investmentininfrastructureNationalandlocalgovernmentpolicyisfocusedoncreatingandconvertingculturaloffersandresources-includingmuseumsandartfairs-intoeconomiccapital,butthereisanoverridingneedforinvestmentininfrastructuretoenablethemtonotonlyfunctioneffectively,butalsoexploittheirfullpotentialinaninternationallycompetitiveenvironment.

Withoutthisinstitutionalandorganisationalinvestmenttoaccompanycapitalfundingincentivesandpolicies,ownersofnewmuseumbuildingsoftentakeontheroleofdirectorwithnosector-basedexperience,andcanonlyaffordstaffwithlimitedskillsandexperience.

PowerStationofArt,Shanghai,July2019Collections/Programming/ArchiveUnlikenationalorprivatewesternartmuseumsfoundedonthebasisofcollections,manymuseumsinChina,includingthePowerStationofArtdonotholdcollections,orhavecollectionsastheirfoundingremit.Theburdenofincome-generationtocoveroperationalcostsisthereforeexclusivelydependentonticketedexhibitionsandprogramming.Thechallengeformuseumstaffissubsequentlytogeneratecontentalignedtoadifferentvaluesystemthanthatofartasinvestmentandtoworkcreativelytogeneratenewaudiences.Whileexpensiveticketedexhibitionsmaybesuccessfulandattractasignificantaudience,creatingasustainable,repeataudienceonthisbasisismorechallengingathighpricesandencourages‘populist’programmingthatcanpotentiallylimittheappealofmorecontemporary,experimentalart.Theinabilitytoplanlongeraheadthan12-18monthsfurtherlimitsthepotentialtosecurelargeinternationaltouringexhibitionswhichareplanned5-6yearsahead.

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ZhangPeili,SoundInstallationwithTransistors,andHornSpeakers,TankMuseum,2019Asintervieweesdiscussed,puttingasidethechallengeofstaffandbudgetresources,theonusoncreativeandeducationalprogrammingtodevelopaudiencesiswelcomeandunliketheartfairofferisfocusedoncross-generationalprogramming,andincreasinglyschool-ageandyoungpeople.RecognitionoftheneedtoestablishaprovenanceandhistoryforChinesecontemporaryartthrougharchivalprojectswasevidentacrossalltheinterviewstoestablishacreativeandculturalvaluechainforcontemporaryart.AshomeoftheShanghaiBiennialwhichisoneofthemostestablishedcontemporaryartsinitiativesinChinahavingstartedin1996,thePowerStationofArtiscurrentlyresearchingitsarchivetowardsamajorexhibitioninthenearfuture.ShanghArt,apioneeringcommercialgallerythatwasalsoestablishedin1996,markedits20thanniversarywithanarchivalpublication.TECHNOLOGY/NETWORKEDCULTURALVALUEAsMcAndrewnotesinhersummarytotheArtMarketReport2019‘in2018,globalsalesintheonlineartandantiquesmarketreachedanestimated$6billion,up11%year-on-year.Mostsignificantly,93%ofmillennialhighnetworthcollectorsreportedthattheyhadboughtfromanonlineplatform[averageage35yrs],comparedtoamajorityofbaby

boomers[53-73yrs]whohadnotboughtart.’ItisnotclearfromstatisticsifthisshiftingenerationaluseoftechnologyisequallyreflectedintheShanghaiartmarketandartfaireconomy,butthescaleofuseofnetworkedcommunicationinChinaisclearfromthewidelyquotedstatisticssurroundingtheuseofthemegaappWeChat,ownedbytheChinesecompanyTencent,thefifthlargestcompanyintheworld.AccordingtoTencent,WeChatcovers79%ofthemarketinChinaand93%ofTier1citymarket.Thereareonebilliondailyactiveusers,andonemillionWeChatminiprograms,(includingthosecreatedbymuseums),usedby600millionpeople.WeChatMomentscount750milliondailyuserswith10billionhitsevery24hours.AccordingtocompanydataWeChatdrove$50billionintotheChineseeconomyin2017.InChinathereare659millionactivenetizens;halfthepopulation.Thepotentialforallmembersofthecontemporaryartsecologytoworkwithnetworkedsocialmediaasameansofculturalproduction,distributionandconsumption,inadditiontoeducationandmediationisevident.Understandinghowthisnetworkedcommunicationisacquiringandproducingvaluethroughcontentgenerationandanever-expandingimage-basedeconomyis,asinthewest,highlychallenging,buttherewardsofmoreknowledgeintermsoffosteringcreativeinnovation,income-generation,andaudiencedevelopmentpresentsauniqueopportunity.Greaterrecognitionofthecreativeandculturalvalueoftechnology-basedcommunicationandinteraction,onlineandintheartfair,museumandgalleryspacewouldundoubtedlyhelpaddressconcernsexpressedbyintervieweesabouttheriseofthe‘selfie-exhibition’(exhibitionsdesignedandtargetedatselfieculture)andhelpexpandand

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diversitycontemporaryartformsandplatformsforcreativeproduction.Forgingstrongerpartnershipsandcreatingmoreactivecollaborationsbetweenart,designandtechnologywithintheShanghaiartsecologywouldalsoclearlyrespondtotheincreasingexpectationsandinterestininterdisciplinarycreativepractice.FortheWestBundArtFair,locatedwithinaculturalcorridorequallydefinedbytheWestBundGroup’sfocusonArtificialIntelligenceandtheTankMuseum’sactiveagendainsupportingAItheopportunityisimmense.AtthetimeofwritingtheTankMuseum’sTeamLabexhibition‘TheUniverseofWater’whichopened23March2019hadattractedover300,000visitorsandwillalsofeature

asakeybackdroptotheWestBund’sWorldArtificialIntelligenceConferenceinAugust2019.

teamLab,‘UniverseofWaterParticlesintheTank’,installationshot,July2019

ReferencesAHRCUK-ChinaCreativeIndustriesPartnershipDevelopmentcall:https://ahrc.ukri.org/funding/apply-for-funding/archived-opportunities/uk-china-creative-industries-partnership-development-grants/.AccessedJuly2019G.Adam,BigBucks:TheExplosionoftheArtMarketinthe21stCentury,London2014G.Adam,DarkSideoftheBoom:TheExcessesoftheArtMarketinthe21stCentury,London2018H.Becker,ArtWorlds,UniversityofCaliforniaPress,1984N.Ching&L.Tanner,LookingtoNewInstitutionalModels:China’sCulturalLandscapebyMid-Century,Museum2050,2019A.Girshovich,‘ArtFairs,BiennialsandtheContemporaryArtLandscape’,Sotheby’sInstitute,15November2018.AccessedJuly2019athttps://www.sothebysinstitute.com/news-and-events/news/art-fairs-biennials-and-the-contemporary-art-landscape/M.Keane,CreativeIndustriesinChina,Polity:Cambridge,2013D.Chau,‘ChinaIstheWay,andIAmtheWay’,Larry'sList,http://www.larryslist.com/artmarket/the-talks/china-is-the-way-and-i-am-the-way/.Accessed10August2019ClareMcAndrew,TheArtMarket2019,UBSandArtBasel,2019H.vanManen,HowtostudyArtWorlds,UniversityofAmsterdamPress,2014V.Walsh,A.Dewdney,CulturalValueandtheDigital,RCA/Tate,AHRCreport,2014.https://www.tate.org.uk/about-us/projects/cultural-value-and-digital-practice-policy-and-theory.AccessedJuly2019.M.Wang,‘Power,Capital,andartisticfreedom:contemporaryChineseartcommunitiesandthecity,CulturalStudies,2019,33:4,657-689J.Woetzeletal,Chinaandtheworld:Insidethedynamicsofachangingrelationship’,MckinseyGlobalInstituteReport,July2019YaoYung-Wen,‘China’smodernimage–contemporaryChineseart’,JournalforCulturalResearch,2017,21:1,51-75