While galleries are betting that mainland buyers will pick up the slack, the three mainland art fairs — CIGE and Art Beijing in April in Beijing and ShContemporary in September in Shanghai — are all taking actions to ensure success despite the threats in the market, and from a new competitor, Art HK. The Hong Kong fair opened to great success in 2008 and has already wooed several galleries away from the mainland fairs, as well as attracted blue-chip Westerners like Gagosian, Lisson, and White Cube galleries. Dong Mengyang, executive director of Art Beijing, explained that the fair is in negotiations with the Chinese government to eliminate the 34 percent customs tax on art transactions that has proven to be a major obstacle for all mainland fairs and has put them at a disadvantage to Art HK 09, scheduled for May. Colin Chinnery, the newly appointed director of ShContemporary, said that booth costs will be greatly reduced and free accommodations will be provided for all collectors invited by galleries; he’s also invested in the fair’s leadership, inviting Mami Kataoka, curator at Japan’s Mori Art Museum, multimedia artist Wang Jingwei, and e-flux producer Anton Vidokle to serve as an advisory team. Art Beijing will also reduce fair fees, with the help of a fund established with support of the Beijing municipality.

“Honestly, business is a bit more difficult, but it’s a good time,” says Fabien Fryns, owner of F2 Gallery, who sees his core clients benefiting from the drop in prices. Fryns does a large amount of secondary-market business, especially for artist Zeng Fanzhi, who has gained attention worldwide and will be opening a solo show at Acquavella Galleries in New York in April, but who priced out of some collectors’ range when his works soared to over $10 million at auction. “The last few years weren’t normal either,” Fryns says, adding, “it’s important that we go through something like this.”