Wang also said that trading in free trade zones reduces costs. "Let's say consumers come back from abroad with a bottle of quality red wine. If there is a classy restaurant in the zone, they can just consume the wine at that restaurant without paying taxes."
Wang added that the storage services in the free trade zone will prove useful. Since it is unsafe to store expensive art at home, many people will take advantage of storing and managing artworks at another location.
Having a place for professional artwork storage encourages some to bring Chinese art back from overseas.
Wang said that a free trade zone would help promote the Chinese market, but in terms of having an actual effect on auction companies or tax policies - this will only be revealed through time.
Contentious voices
As the project is still in construction, critics are raising concern about the location and services of the free trade zone.
Liu Shangyong, the general manager of Beijing Rongbao Auction Co. Ltd said the location of the free trade zone was poorly chosen, as the distance away from the city center is disadvantageous in attracting people.
He said that people hope to have an enjoyable environment and quality facilities and services when attending an auction. More importantly, Liu added that the free trade zone does not offer preferential tax policies.
"If you buy a piece and want to get it out of the free trade zone, you still need to pay tax," Liu said.
Sun Cong, a collector who owns an antique shop in Jinzhou, Liaoning Province told the Global Times that the factors that influence collectors are complicated.
Sun travels often between Europe and China to purchase items for his antique shop. Tax policies affect customs, applying for relevant documents, providing receipts to auction companies and many other procedures. These procedures will remain unaffected by a free trade area.
"The free trade zone may benefit big auction companies, not collectors or small businessmen like myself ... I sell antiques in China, so taxes are unavoidable."
Sun said he cares more about policies that are relevant to him. But he agrees that a free trade zone would provide more opportunities in the grand scheme.
Shen said that Gehua group is currently in conversation with a few international companies. The project is planned to be completed by 2015.
Editor: Shi Liwei
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