One of the world's largest auction house, Sotheby's announced that it has signed a joint venture with a Chinese state owned company, making it the first international fine art auction house to operate in the country.
The deal with Beijing GeHua Art Company, which is subject to government approval, will give Sotheby's a foothold in China where foreign auction houses are normally prevented from operating by law.
Sotheby's opted for the creation of a joint venture in its years-long bid to overcome the legal hurdle.
The auction house said it would be the controlling share holder in the business.
For centuries the worldwide art market was dominated by a few European auction houses, but a revolution has seen five Chinese houses enter the top ten by revenue, according to a recent report by information specialist Artprice.
A new generation of collectors in Beijing and Shanghai has pushed China to the forefront.
And Chinese artists Zhang Daqian (1899-1983) and Qi Baishi (1864-1957) now hold the top two places in Artprice's global ranking of artists by auction revenue, ahead of Andy Warhol (1928-1987) and Pablo Picasso (1881-1973).