New China Policies and their Impact on American Museums

The proposed Countering Communist China Act (H.R. 7476) has raised concerns among museum professionals about its impact on cultural exchange and planned exhibitions. While the current congressional session is drawing to a close, the bill’s prospects appear strong given the incoming administration’s hawkish stance on China policy. Aimed at addressing national security risks, the legislation introduces stricter compliance rules, including increased financial oversight and due diligence, which could make it more difficult to acquire and exhibit Chinese art in the U.S.

A Landscape
Of Regulations

The bill comes against the backdrop of existing measures, such as the U.S.-China Memorandum of Understanding (MOU) on archaeological material and tariffs on Chinese goods, which have already created significant challenges for cultural institutions.

Lark E. Mason, Jr., a renowned expert in Chinese art and former President of the Appraiser’s Association of America (2019–2021), brings decades of experience to this discussion. Over his nearly 25 years at Sotheby’s New York, he served as a senior officer, generalist and expert in Chinese works of art. Additionally, as Chairman of Asia Week New York (2016–2017), Mason has been at the forefront of fostering international cultural exchange. His insights offer a valuable perspective on the complexities of H.R. 7476 and its potential impact on museums and collectors alike.

The auctioneer and former curator notes that the Chinese art community already operates under strict reporting requirements, citing the MOU between China and the U.S., implemented in 2012. This agreement, aimed at controlling the trade of archaeological materials, has profoundly shaped the market for Chinese art.

“Antiques were once exempt and allowed to be traded with minimal reporting, in the belief that cultural exchange was conducive to better understanding and appreciation of other cultures,” Mason explains. But over the past decade, this openness has diminished. Combined with additional measures like tariffs and changes to the Endangered Species Act (Director’s Order 210), institutions and collectors alike have faced increased restrictions.

H.R. 7476 introduces further layers of compliance but differs from earlier policies by including provisions for exemptions. As Mason highlights, the President has the power to waive requirements for activities deemed in the national interest, as well as for transactions deemed ‘de minimis’—a term referring to objects of minimal value or significance. These waivers are intended to prevent the legislation from overburdening minor or low-risk transactions. However, how these exemptions will be defined and implemented in practice remains unclear, leaving uncertainty about their effectiveness in easing the administrative burden on museums.

The Impact on Small Museums and Large Institutions

The proposed legislation is likely to affect museums differently depending on their size and resources. Larger institutions, such as the Metropolitan Museum of Art or the Smithsonian, often have the infrastructure to manage complex compliance requirements. Dedicated teams for acquisitions and legal matters can help them navigate additional reporting demands and seek waivers when necessary.

Smaller museums, however, face a tougher road. Without the same level of administrative or financial support, the cost of compliance could deter them from engaging with Chinese art entirely. “The result is fewer transactions and therefore less understanding because of the perceived difficulty of owning material from archaeological sources,” Mason observes.

This disparity raises concerns about equitable access to Chinese art. If smaller institutions are effectively sidelined, audiences in less-resourced areas may miss out on opportunities to engage with one of the world’s richest artistic traditions.

Beyond compliance, a broader issue looms: the potential chilling effect on cultural exchange. Even with waivers available, Mason points out that institutions often adopt overly cautious internal policies to avoid missteps, going beyond what regulations require. This conservative approach has already discouraged some collectors, dealers and museums from working with archaeological materials, further narrowing the scope of cultural exchange.

Build Understanding, Not Fears

Share Heritage, Not Division

Bridge Nations, Not Barriers

Protect Culture, Not Isolation

“The enhanced prosecution and repatriation of works of art illicitly obtained from archaeological sources have cast a pall over legitimate transactions,” Mason notes. While these measures are well-intentioned, they have inadvertently discouraged participation in the market, stifling opportunities for education, scholarship and public appreciation.

Balancing Oversight with Opportunity

Navigating the complexities of H.R. 7476 will require careful advocacy and proactive solutions from the museum community. Policymakers need to hear from cultural institutions about the unique challenges they face and the importance of maintaining access to Chinese art.

Clearer language in the legislation could help ensure that museums are not unintentionally burdened. For example, explicitly defining how waivers can be applied to cultural exchanges would offer reassurance to institutions. Additionally, providing financial or administrative sup- port for smaller museums could mitigate the unequal impact of compliance requirements.

Equally important is the need to revisit existing regulations, such as the MOU and DO 210. Mason argues that these policies have often caused more harm than good, particularly for legitimate collectors and institutions. “Both of these should be rescinded or significantly modified,” he suggests, emphasising that a more balanced approach to cultural exchange would benefit museums, collectors and the broader art community. A review of these measures could help alleviate unnecessary burdens while still addressing their original goals.

As the museum community adapts to this evolving landscape, it’s crucial to remember the bigger picture. Chinese art has long served as a bridge between cultures, offering insights into a civilisation that has profoundly influenced global history. By advocating for thoughtful policies that preserve this exchange, museums can continue to play a vital role in fostering understanding and connection.

Rather than retreating in the face of new challenges, this moment presents an opportunity to reaffirm the value of cultural dialogue. With careful navigation, the spirit of collaboration and exchange that has defined the relationship between U.S. museums and Chinese art can endure, ensuring that these treasures remain accessible to future generations.