The Peoples Republic of China and the Foreign Art Trade: Where the Data Falls Short

This paper examines the shipping records of fine art between China and the United States for the years 2000-2012. United Nations COMTRADE data is utilized to explore westward and eastward-bound shipping directions by comparing import and export records for HS shipping code 97. China largely under reports art shipments in both directions compared to the United States. In the westward-bound direction, cultural heritage law evasion is the primary cause for the misreporting. This paper reveals that under reporting the value of shipments was the primary evasion tactic until 2011 when mismarking the shipping code became the evasion tactic for cultural heritage law evasion. The eastward-bound direction is less conclusive however sustains grave underreporting at the Chinese border, with routinely over 90% less value reported than at the United States border. There are indications that tax evasion and money laundering are the primary causes for China's underreporting in eastern-bound trade.