Cash-Strapped Hong Kong Arts Hub Saved—Plus a Rundown of the Latest in Asia’s Art World
Hong Kong's financially struggling West Kowloon Cultural District, a major arts hub, has been rescued from its cash crisis. This development was part of a broader Asia art world update that also included leadership changes at Japan's Art Collaboration Kyoto and the announcement of a new art fair in Shenzhen.
10 practical reasons need fund defend national endowment arts
President Donald Trump's administration has renewed efforts to defund the National Endowment for the Arts (NEA), proposing for the fourth consecutive year a budget that would zero out the agency. The Heritage Foundation, a conservative think tank that has staffed the current administration, continues to promote its 1997 report 'Ten Good Reasons to Eliminate Funding for the National Endowment for the Arts' as a key reference in debates. This article, originally published in 2020 and republished in response to these developments, systematically rebuts each of the Heritage Foundation's arguments against the NEA, beginning with the claim that private support alone is sufficient.
Berlin's culture senator, Joe Chialo, has resigned due to a dispute over deep budget cuts to the city's arts sector. He stated that the planned cuts would force the closure of nationally renowned cultural institutions, and he stepped down to allow for new perspectives. Meanwhile, Australia's center-right Liberal-National Coalition has proposed cutting over 10 percent of funding to Creative Australia, the body that organizes the country's Venice Biennale pavilion, redirecting the money to support Jewish arts and broadcasting in Melbourne. This follows controversy over Creative Australia's decision to drop artist Khaled Sabsabi as Australia's Venice Biennale representative.
The Gelman Collection, featuring 11 essential masterpieces by Frida Kahlo, is at the center of a heated legal and cultural dispute following news of its transfer from Mexico to Spain. Acquired by the Zambrano family and managed by the Banco Santander Foundation, the collection is slated for a multi-year residency at the new Faro Santander cultural hub. Critics and historians argue the move potentially violates Mexico’s strict heritage laws, which designate Kahlo’s works as national monuments subject to permanent export bans.
Saudi Arabia is significantly scaling back its ambitious "Vision 2030" cultural and infrastructure spending due to falling oil prices and massive budget overruns. Major international projects, including a $200 million investment deal with the Metropolitan Opera in New York and funding for the Centre Pompidou’s refurbishment, are currently in limbo or facing payment delays. Reports of unpaid invoices to art service firms and the halting of "gigaprojects" like Neom suggest a period of financial retrenchment for the kingdom.
Kent County Council, led by the Reform party, has removed and sold Antony Gormley's early public sculpture 'Two Stones' (1979-81) from outside the Kent History and Library Centre in Maidstone. The council sold the work back to the artist himself in a private sale to raise funds, citing severe financial pressures and a need to avoid increasing costs for residents. The council's most recent accounts valued the work at £859,000, but the final sale price remains confidential.
Two French parliamentarians, Jean-Paul Matteï and Philippe Juvin, have proposed a new tax regime on art as part of France's 2026 budget, which would make France the only major art market to impose a wealth tax on the mere possession of artworks. The French art world has strongly opposed the proposal, with 27 signatories including Art Basel, auctioneer Drouot, visual artists' rights organization ADAGP, the Association for the International Diffusion of French Art (ADIAF), and the Comité Professionel des Galeries d’Art (CPGA). Critics argue the tax is technically unenforceable, would drive collectors away, and harm the broader art ecosystem.
Italy has announced a reduction in its VAT on art sales from 22 percent to 5 percent, the lowest rate in the European Union. The move, approved in a cabinet meeting and set to take effect within days, follows sustained pressure from Italian galleries, artists, auction houses, and art market players. The new rate must be approved by parliament within 60 days to become permanent. The change aligns with an EU directive allowing member states to lower taxes on art sales to at least 5 percent, and comes after the government initially resisted calls for reform.
The U.S. Department of Homeland Security (DHS) used a painting by Japanese artist Hiroshi Nagai in a social media post without his permission. The agency cropped his 2017 untitled beach scene and overlaid it with the text "America After 100 Million Deportations," accompanied by a caption about national peace. Nagai, 78, expressed being "at a loss" and disappointed that a government agency would use his work to promote a political message he does not endorse.
The UK's Artist Resale Right (ARR), a law entitling visual artists to royalties from secondary market sales of their work, marks its 20th anniversary. Initially met with fierce opposition from auction houses and dealers who feared it would drive high-value sales offshore, the scheme is now largely accepted by the UK art trade, though concerns about administrative burdens compared to markets like New York and Hong Kong remain.
Italian lawmakers have approved a reduction of VAT on art sales from 22% to 5%, the lowest rate in the European Union. The decision, announced by culture minister Alessandro Giuli after a cabinet meeting on June 20, is expected to take effect this week. The reform follows intense lobbying by art market groups and a letter signed by 500 art world figures, including artists Maurizio Cattelan and Michelangelo Pistoletto, who warned the high rate was turning Italy into a "cultural desert." The tax cut must be passed by parliament within 60 days to remain in force, and may also apply to import VAT, potentially making Italy the most competitive art market in Europe from a tax standpoint.
Greece has enacted a landmark legislative framework specifically designed to combat art forgery, vandalism, and the trade of counterfeit cultural property. The new law introduces stringent criminal penalties, including prison sentences of up to ten years and fines reaching €300,000, while mandating the destruction of works confirmed as fakes. Key provisions include the creation of an independent registry of forgery experts under the culture ministry and the expansion of legal protections to include historically significant cinemas.
The U.S. Trade Representative, Jamieson Greer, has launched a Section 301 investigation into 60 countries to determine if forced labor practices create unfair trade advantages. This move follows President Trump’s continued push for sweeping tariffs after previous attempts were struck down by the Supreme Court. Major art organizations, including the Association of Art Museum Directors (AAMD) and Heritage Auctions, are formally petitioning for works of art and antiquities to be exempt from any resulting duties.
The U.K. government has imposed a temporary export bar on a mid-19th century marble sculpture by Henri-Joseph-François de Triqueti, depicting sisters Florence and Alice Campbell. The work, valued at £280,000 ($367,000), sold for £117,700 at Lyon and Turnbull auction house in January 2025. The Department for Culture, Media, and Sport (DCMS) intervened on the advice of the Reviewing Committee on the Export of Works of Art (RCEWA), citing the sculpture's rarity, outstanding aesthetic importance, and potential for scholarly study. The export license is deferred for three months, with a possible six-month extension, to allow a U.K. institution to acquire it.
On July 23, U.S. Senator John Fetterman introduced the Art Market Integrity Act, a bill that would apply anti-money laundering (AML) and counter-terrorism financing regulations to art dealers, auction houses, galleries, advisers, consultants, custodians, museums, collectors, and other intermediaries in the art market. The legislation amends the Bank Secrecy Act, requiring these entities to conduct client due diligence, maintain records, and report suspicious transactions. It exempts artists selling their own work, nonprofits, and businesses with under $50,000 in annual art transactions. The bill is co-sponsored by Senators Chuck Grassley, Sheldon Whitehouse, Bill Cassidy, Andy Kim, and David McCormick.
The UK government has imposed an export bar on Sandro Botticelli's painting *The Virgin and Child Enthroned* (1470s), valued at £10.2 million. The work was sold at Sotheby’s London in December 2024 for £9.7 million (with fees). The export bar, effective until 8 August, gives a UK gallery or institution time to acquire the painting and prevent it from leaving the country. The Department for Culture, Media and Sport (DCMS) has set a recommended price of £9,960,000 plus VAT. The painting, which had been kept at Betterton House in Berkshire since 1944, was previously owned by collector Harriet Sarah Jones Loyd (Lady Wantage) and has not been seen in public for nearly a century.
A new European Union regulation, Regulation (EU) 2019/880, will take effect on June 28, requiring thorough provenance documentation for cultural objects over 200 years old (or 250 for archaeological items) imported into the EU. Importers must provide material evidence proving lawful acquisition from the country of origin, including the object's origin, export date, and chain of ownership, or face potential seizure. The rule builds on a 2019 anti-trafficking law and has sparked concern among EU-based dealers, who warn it could stifle the market for antiquities and non-European art.
The German state of North Rhine-Westphalia (NRW) is introducing a legislative bill to ban the commercial trade of personal Holocaust documents and artifacts, such as letters from concentration camps, Gestapo cards, and yellow stars. The initiative follows international outrage over a planned auction in Neuss in November 2025, which was halted at the last moment; around 460 objects from that auction were transferred to the Auschwitz-Birkenau Foundation. The bill, to be presented at the Bundesrat session on May 8, aims to prohibit the sale of items directly linked to Nazi victims, while exempting museums, archives, and research institutions.