Jia Zhangke

This month, New York’s Museum of Modern Art (MoMA) is presenting a full retrospective of acclaimed Sixth Generation Chinese filmmaker Jia Zhangke. Running through March 20, the series opened this past Friday (March 5) with a screening of Shi Jie (The World), introduced by the director himself. Over the next three days, Jia introduced films at five more screenings, which were also attended by Zhao Tao, Jia’s leading actress since Platform (2000).

On Monday, March 8, MoMA presented “An Evening with Jia Zhangke.” In addition to introducing two short films (Ten Years and Black Breakfast) and a mini-preview of his upcoming work, Shanghai Legend (I Wish I Knew), the director took part in an hour-long conversation with Howard Feinstein, critic and programmer of The Sarajevo Film Festival, and Kevin B. Lee, critic, programmer, and production executive of dGenerate Films.

The Jing Daily team was on hand for the sold-out event, and conducted an exclusive interview with Jia Zhangke, which will be posted in two parts beginning Wednesday, March 17.

Jia is one of China’s most celebrated filmmakers, having begun his career in the early 1990s at the Beijing Film Academy. Gaining international attention with his first feature, the shoestring independent production Xiao Wu (Pickpocket, 1995), Jia went on to complete two more “underground” features, Platform (2000) and Unknown Pleasures (2002). He then became an “official”—if still independent-minded—filmmaker with Shi Jie (The World) in 2004. More recently, Jia has been acclaimed for films like Er Shi Si Cheng Ji (24 City, 2008), which combine documentary and fiction in a surprisingly resonant hybrid form.

Jia Zhangke discusses his upcoming projects with the Jing Daily team at MoMA, March 8, 2010

In his work to date, the gritty reality of life in contemporary China has been a constant focus for Jia—a fact noted by MoMA film curator Jytte Jensen, organizer of the retrospective, who characterized his work as “instrumental in depicting the human repercussions of the historical changes of his country…in an original cinematic language.”

The conversation among Jia, Feinstein, and Lee touched on topics ranging from the director’s leading actress, Zhao Tao (whom Jia praised for her ability to turn everyday movement into a kind of dance), to why Jia continues to work within the official Chinese film industry. Citing his early experience in making The World, he confessed to having worried at the time if he’d be able to express himself honestly. But, he said, speaking through an interpreter, “I hope in the films I’ve made since, it’s clear that I didn’t compromise my vision or my aesthetics” to maintain his “official” status. “It’s very time-consuming to work with censorship,” he commented. “But the system should continue to be challenged. That’s one reason I stay in the system.”

Jia is also interested in helping other independent filmmakers; to that end, he has established a production company, XStream, that develops projects with investors in China and elsewhere. “We need an independent film industry,” he said, “so that filmmakers have more room to be creative without worrying about funding or distribution.”

Asked about the hybrid documentary/fiction style he developed in 24 City, Jia said: “I started the whole project as a documentary. There are six actual workers in the film, then fictional parts played by actors. The more I tried to capture reality, the more I realized I had to use fiction. I used well-known actors—Joan Chen, Zhao Tao—so viewers could recognize when we were in the fictional part.” One reason he likes to work with non-professionals, he said, has to do with language. “These are people who can use the most natural dialects. For a long time in the Chinese film industry, there were no dialects permitted—you could only speak Mandarin. I don’t think Mandarin is as moving as dialect. For many people it’s the mother tongue. You can be more natural, more nuanced, when you use dialects.”

For more on upcoming screenings of Jia Zhangke’s films, check MoMA’s website.

Be sure to come back to Jing Daily next Wednesday for the first part of our exclusive interview with Jia Zhangke, where he discusses the current state of filmmaking in China, his current and upcoming projects — including his first martial arts film and a rumored project with Jackie Chan — and his thoughts about operating both as an independent artist and a part of the Chinese official film system.

Despite being China's poorest province, Guizhou is famous for its displays of minority culture and natural beauty (Photo courtesy LIFE Magazine)

Since further relaxing travel restrictions on mainland Chinese tourists last year, Taiwan has seen a massive increase in cross-straits tourism, with an estimated 600,000 mainlanders venturing across the water in 2009. These tourists have been something of a godsend for the Taiwanese economy, with mainland tourists spending around 7.7 billion RMB (US$1.13 billion) in Taiwan after restrictions were loosened in June 2008.

This year, Taiwan is hoping for 750,000 mainland tourists to visit the island, and has embarked on a (tourism) charm offensive, setting up a cooperative cross-straits tourism office in Beijing and signing agreements with officials in several provinces.

One of these agreements stands out in particular. This week, during the 13th Cross-Strait Travel Industry Meeting in Guiyang, the capital city of the southern Chinese province of Guizhou, tourism officials from Taiwan and Guizhou announced that they had reached a broad consensus to increase tourism exchanges and promote new tourism routes in both regions.

From China Hospitality News:

Bai Zhongren, the director of Certified Travel Councillor Association, said Taiwan travel agencies will add several new routes to the existing Huangguoshu and Miao Village route. For example the rape blossom route in spring, the Daqikong and Xiaoqikong route in Libo, the Miao New Year in autumn, and the wine journey in northern Guizhou. They also plan to introduce the Guiyang-Fanjingshan Mountain-Fenghuang route in this autumn.

Xu Yongyu from Taiwan’s South East Travel Service Company introduced a new product to Guizhou which mainly targets senior citizens, including eight-day journey in western Taiwan and an eight-day journey in eastern Taiwan. Besides the traditional National Palace Museum, Alishan, and Taipei 101, there will be new activities such as communicating with senior citizens in Taiwan and eating healthy pollution-free food.

Although this sounds like a pretty standard, sterile agreement, it’s important to consider who benefits more from it. Taiwan clearly wants more mainland tourists to visit, not least because of their free-spending reputation, but it’s interesting that tourism officials chose Guizhou — by far China’s poorest province.

While Taiwan-bound Guizhou tourists might not spend nearly as much as their counterparts from other parts of the country (although you never know), Guizhou officials must be struggling to contain their excitement at the prospect of more well-heeled Taiwanese visitors soaking up Guizhou’s interesting cultural sights and sounds — and, perhaps most importantly, opening their wallets.

Macau is in the midst of a transformation, from a gambler's hangout to a luxury tourism, gaming and cultural hub

Jing Daily has written before about the Macau city government’s plan to transform the city from a destination for one-day gamblers into an international shopping, tourism, MICE (meetings, incentives, conferences and events) and culture hub, of which the gaming industry makes up only one part. In their efforts to make this transformation, the Macau government has encouraged the construction of new, world-class venues and luxury shopping centers while at the same time promoting more cultural events — from art exhibitions (previously) to performances and large scale conferences or pageants.

This summer, two of the things Macau most wants to be known for — luxury and conferences — collide at the 5th annual China Luxury Summit.  After taking a year off in 2009, the summit is back in Macau this year, and from the looks of the attendees it is clear that the dramatic rebound of the Chinese luxury market (covered extensively here) in the wake of the global financial crisis has injected a much-needed dose of confidence into an industry that desperately needs some good news.

According to the event website, the major themes of this year’s summit will be “the coordination between brand globalization and brand exclusivity” (a key dilemma for companies now operating — and expanding — in mainland China) and “the emerging luxury lifestyle in [the] post-crisis era.” Previous attendees include representatives and executives from LVMH Group, Richemont Group, PPR Group, Prada, Hermes, Chanel, Tiffany, and Coach, and this year home-grown luxury brands like Qeelin (previously) will take part as well.

In addition to speakers representing major global luxury brands, a number of influential academics and media figures will take part in the China Luxury Summit, including Pierre Xiao Lu, Assistant Professor at Fudan University’s School of Management and co-author of Luxury China (previously reviewed on Jing Daily), and Radha Chadha, Managing Director of Chadha Strategy Consulting and author of The Cult of the Luxury Brand: Inside Asia’s Love Affair With Luxury.

These and other speakers will address a number of important issues that luxury brands from around the world are now coming up against in the rapidly growing, but amorphous and segmented China market: How long can China’s economic growth entice its super-rich to consume luxury goods? Has there been any change in consumption psychology or a transformation in China’s luxury model in this post-crisis period? Will luxury brands operating in China make a significant shift from a “gold-rush” to a “ROI” strategy? What role will e-commerce play in the future of luxury retailing in mainland China?

These questions and many more will be covered in keynote speeches, interactive panel discussions, master-class training sessions and workshops.

More information about the 5th annual China Luxury Summit is available on the event website.

An Imperial khotan green jade seal from the Qianlong period sold in London to a Chinese collector for nearly US$6 million last fall, far beyond its US$995,000 high estimate (Photo courtesy Sotheby's)

Jing Daily has already put together a preview of what to look for next month at the Sotheby’s auction of Contemporary Asian Art in Hong Kong, but today the Wall Street Journal takes a more specific look at the particular techniques that Sotheby’s is using to promote spring auction season there. By highlighting the undertones of power and authority in the objects up for auction, particularly in promotional materials auctions of antiquities from the court of popular Qing Dynasty emperor Qianlong (previously on Jing Daily), Sotheby’s is smartly playing to the cultural and historical proclivities of (primarily) mainland Chinese collectors.

From the article:

The theme of the promotional materials, “Imperial Power,” is designed to appeal to collectors from China keen to buy artwork and antiquities from their own country, said Nicolas Chow, Sotheby’s senior director for China and Southeast Asia. Many are business people, often with “a clear sense they are buying their history back,” he said.

For these buyers, an association with power and authority carries more clout than the usual approach taken with Western buyers of Asian collectibles. That approach is summed up by the title of a catalog for the same April 8 Hong Kong auction presented to Sotheby’s European and North American clients: “Objects of Contemplation.”

“It is really about pitching the right piece to the right clients and presenting the objects in such a way that our clients can make sense of them with their respective set of references,” said Mr. Chow. “It is about understanding the objects, what they are, what they say, and having a solid grasp of our diverse clientele.”

Buyers from mainland China have become important to the major auction houses. As China’s economy expanded, wealthier Chinese auction buyers were gaining ground on their Western counterparts. The global economic downturn, which was less severe in China, accelerated their rise.

That makes it more important for auction houses to tailor their marketing to the Chinese, who are active in other categories as well. Bonhams, which opened a Hong Kong office in 2007, initially sold only art, but soon added watches, jewelry, wine and even whiskey to its roster of Hong Kong auctions. The company also plans more promotional events on the Chinese mainland.

The stated focus on Confucian ideals in Sotheby’s promotional materials for these upcoming sales is particularly noteworthy because it shows that the growing importance of the Chinese market is creating — rather than aping — real trends in the global auction market. Where once Hong Kong was playing second fiddle to New York or London, now it’s clearly coming into its own as a major player — powered by Chinese collectors both local and from the mainland.

Weddings are getting ever more lavish among the wealthy in China

Though the vast majority of weddings in China remain traditional affairs, held banquet style with family and friends, or consist of simply registering at the marriage registration office for a nominal fee of around US$1, for China’s “post-80s” generation — those born and raised in the period following China’s economic reforms (arguably China’s first-ever “me generation”) — lavish, over-the-top weddings are gaining popularity.

As always, along with this increasing popularity has come an increase in the number of hotels, resorts, and entrepreneurs hoping to get a piece of this lucrative, if still nascent, industry.

This week, People’s Daily looked at the growing number of couples in China that want their wedding day to be less traditional and more about, as one young woman says, “fulfilling a dream and showing off.” From the article:

In Shanghai, around 130,000 couples registered for marriage in 2009 and the figure is expected to rise to 150,000 couples this year, says He Lina, the secretary-general of Shanghai Wedding Association.

These newlyweds are showing off their spending power.

A survey by China Investment Research Consultant shows average expenditure on a wedding was 30,000-40,000 yuan ($4,400-5,900) in 2009 compared with 20,000 yuan in 2005.

…

At the Ritz-Carlton Sanya there is professional help at hand for every couple.

“Our trained ‘romanceologist’ always has surprises in store for the customers – no matter whether it’s proposing underwater with a ring inside a seashell or modifying our oceanfront chapel into a Catholic church, or Buddhist temple, for wedding,” says Michel Goget, general manager of the hotel.

As the article goes on to note, these “fantasy” weddings, photos of which can be found on dozens of Chinese websites and forums — and which often incur the wrath of Chinese netizens (or the government) — are certainly not for everyone. Not only because of the prohibitive price tags, but also because of their perceived wastefulness. In tandem with the rising number of lavish weddings has been a rise in the number of so-called “naked weddings.”

The so-called bare marriage or “naked marriage” refers to holding one’s wedding without ceremony, a photo shoot, honeymoon and sometimes, even no wedding ring, house and car. The cost of the cheapest bare marriage is just 9 yuan and the fee goes to the marriage registration office of the department of civil affairs.

For Zhang and his wife, the process of getting married simplified to a dinner with friends and family in an ordinary restaurant, which cost him hundreds of yuan.

The monthly salaries of the couple, at the beginning of last year when they got married, were more than 20,000 yuan.

“Bare marriage is worth encouraging, because the basic idea behind an economical wedding involves no waste of resources,” says Zhou Xiaozheng, a sociology professor at People’s University of China.

Although European luxury brands are counting on China to power profits for years to come, Chinese brands have their own plans to crack their home market

Last year, Jing Daily wrote about the gradual emergence of home-grown Chinese luxury brands, which have incorporated traditional Chinese cultural and aesthetic traditions into their designs while displaying unmistakably global influences. With China surpassing the United States last year to become the world’s second-largest luxury market and the country quickly gaining ground on the longtime #1, Japan, not only will Chinese consumers be unwilling to have their voices ignored by luxury brands, Chinese luxury brands will look to get a piece of both Chinese and global market share.

This week, an article in Guangzhou Daily (Chinese) looks into the inevitability that home-grown Chinese luxury brands will someday stop imitating and start innovating, selling unique luxury goods “created in China,” not just “made in China.” From the article (translation by Jing Daily team):

Free-spending Chinese have made the world look on in amazement, but as a country’s luxury market matures, it gradually moves from imitation to creation. In the last century Italy, the United States and Japan have all followed a similar path, but this time it’s China’s turn. Of course we can’t expect to see the international status of the “China Logo” to rise in just a few years, but in terms of the world stage of luxury goods, it’s about time for the Chinese to make their debut.

The article goes on to mention established Western brands, like yachtmaker Dalla Pieta and American auto brand Hummer, which were purchased by Chinese companies (or, in the case of Hummer — which appears to be headed to the scrap heap along with its deal with Sichuan Tengzhong — courted by Chinese companies) in the wake of the global financial crisis which saw dozens of luxury brands filing for bankruptcy. As the article goes on to detail, the idea of luxury “created in China” does not have to come totally from within; For some brands, it’s good enough to have a (foreign) luxury brand “with Chinese blood.”

Considering that Chinese consumers make up around 1/4 of the world’s luxury market, it’s no surprise that many global brands have set up shop in China, but as one of France’s top luxury brands — with a Kelly or Birkin bag selling for several hundred thousand [RMB] — Hermes coming to China to invest in a new localized brand really surprised and made an impression on people. Late last December, Hermes brought China a Christmas present, a brand called “Shang Xia” established not just like a domestic brand bought by Hermes in the hopes of building it up, but as a true brand designed from the ground up to take root in China. From the production materials to the Chinese design and management team, localization is the name of the game and is visible in the clothing, accessories, home furnishings and other consumer goods that make up the line. Shang Xia will be available beginning in the spring, when it will open its first store, and will set up shop in Paris this autumn.

The article goes on to discuss other brands that have been purchased by foreign luxury brands, including Hong Kong-based clothier Shanghai Tang (owned by Richemont) and Chinese traditional spirits maker Wenjun (purchased last year by Moet Hennissey). The article then goes on to muse on luxury that is Chinese through and through, from Lan Fine Jewelry (previously on Jing Daily) to premium tea leaves:

China’s not short on history, and has even less of a shortage of items that are tied up with the history of China. Tea leaves are among the most enchanting of these. In 2006, Lundao Zhuyeqing (a type of rare tea — JD)  was the star of the show at the Monaco World Luxury show. Out of 500,000 tea leaves were meticulously chosen only 500, which were presented in a special Zen Buddhist wood box designed by Alan Chan that was inlaid in crystal with verses from the “Dao de Jing,” taking Lundao Zhuyeqing tea leaves far beyond their traditional association as a healthy drink, and making them a reflection of taste, culture, and luxury. With a price tag of 2,280 RMB (US$334) for the premium collection, Lundao can easily sell 30,000-40,000 RMB worth of Zhuyeqing tea leaves in many cities every day. [With their ultra-premium tea,] Lundao can let modern people taste, and understand, Chinese culture in a unique way, and might just become a top international brand.

In the field of jewelry, [Chinese television presenter] Yang Lan and Celine Dion jointly launched a high-end custom brand called LAN fine jewelry. LAN is designed to introduce the concept of top-of-the-line Chinese jewelry, and since being unveiled LAN has enchanted many people already. Prince Charles of the UK and his wife Camilla were touched by the craftsmanship and elegance of LAN’s “Perfect Pair” line and purchased several pieces on the spot.

Recalling the phenomenon of Chinese in the field of fashion, actually it’s clear that there has been a steady stream of Chinese cultural output throughout history. In the 14th century, when Marco Polo wrote about the wonders of that ancient dynasty, right there in the beginning he said that China would have a permanent influence on fashion trends — Chinese style. From the exquisite Suzhou embroidery and hand-painted screens to magnificent cloisonne and unique flowing colors, Europeans were enraptured with what they discovered in the Asian continent. Although in the last few hundred years Chinese people have made little progress in creating brands, and have maybe entered the game too late, more and more people nowadays are willing to try out “Chinese style.” Never before have Chinese brands and the world stage been so close together!

Many of China's super-rich, like investor Liu Yiqian, have become enthusiastic collectors of Chinese antiquities and contemporary art

With wealthy Chinese consumers becoming the darlings of the luxury industry, the auction market, the automotive industry and the art world, it’s no surprise that companies are bending over backwards to find out what drives the estimated 825,000 people worth over 10 million RMB (US$1.46 million) and 51,000 individuals worth over 100 million RMB (US$14.64) to make purchases.

As Jing Daily has noted before, for some things, like luxury cars, consumers in China have very specific needs, for which automakers have made adjustments (such as larger backseats) to localize the product. In terms of luxury products, major brands have had to become more conscious of the rapid increase in consumer sophistication and low brand loyalty, increasing the quality of products offered in the China market and understanding that Chinese consumers of a certain income level generally prefer to purchase luxury goods outside the mainland.

For these industries, looking into why wealthy individuals are spending so much money can often come down to their desire to set themselves apart — to “show off” — but there is also the perception that luxury goods also offer superior quality and, in some ways, have great investment value.

In other areas, like the auction market and its counterpart, the art world, Chinese consumer behavior is often more nuanced. In many ways, Chinese buying habits at auctions (particularly in Hong Kong) follow a cultural predilection towards long-term value and stability. Hence, although wealthy Chinese consumers have gotten something of a bad rap in the media over the past several years, often being depicted as frivolous nouveaux riches one and all, many wealthy Chinese have a very pragmatic way of looking at auction buying.

Much like gold and jewelry, which remain highly popular in China and have been a sort of traditional hedge against inflation there for centuries (despite occasional historical interruptions), art, fine wine, important watches and other auction prizes are seen by many in China as a great “portable hedge” that will hold or grow value in the face of inflation or gradual revaluation of the yuan.

As the Chinese currency is increasingly “going global,” and the country faces more pressure to loosen its tight grip on the yuan, it’s not a bad investment strategy. Perhaps that — along with the growing specter of inflation — is why we’ve seen such an upsurge in new mainland Chinese collectors fighting to get their hands on every piece of blue chip Chinese contemporary art, every ancient Chinese antiquity, and every bottle of Petrus or Lafite up for grabs in Hong Kong or elsewhere — because they’re worried about the future value of yuan-denominated investments and want to diversify their holdings.

Growing mainland collector interest in art collecting has increased buyer confidence over the past several years, despite the global economic crisis

Though most of China’s millionaires and billionaires still have their “permanent” investments — cars, apartments and commercial properties — a good number of them with keen long-term vision know that in a world of unpredictable currency or economic shifts, it’s not a bad idea to “go portable” to stay on the safe side. In terms of the art and auction worlds, the increasing number of mainland-based buyers of art, wine and other portable assets is interesting in other ways, too — they’re not just following trends anymore, they’re actively setting them.

As Chinese collectors become increasingly sophisticated and picky, we should see a sort of domino effect on the prices of certain artists (most of them likely Chinese, as the vast majority of mainland collectors have only just begun to dip their toes into collecting non-Chinese artists) or popular wines around the world.

Wealthy Chinese consumers, then, shouldn’t be misunderstood or misrepresented as fickle, profligate showoffs. Rather, it’s important to keep in mind that there are reasons why mainland Chinese tourists flood Parisian duty free shops (selection, avoiding China’s high luxury tax), why huge sedans are so popular in China (personal drivers popular among well-heeled businesspeople), and why new Chinese collectors have become so visible in the last few years (hedge against inflation and yuan revaluation, growing personal interest in the arts, desire to “repatriate” antiquities and China’s future cultural heritage).

The seven-story Shangri-La Guilin has 449 luxury guestrooms (Photo courtesy Shangri-La Hotels)

Long a favorite of backpackers and more adventurous tourists in China, Guilin, located in southern China’s Guangxi Zhuang Autonomous Region, is famed for its natural beauty, mix of regional minority cultures, and proximity to famous tourist sites along the Li River (lijiang). Despite its popularity as a tourist destination, Guilin has lagged behind other cities in providing both world-class accommodations and a high-end tourist experience for business travelers or high-end visitors.

To capitalize on this gap in the market, Hong Kong-based hotelier Shangri-La, which owns over 30 hotels throughout China, this week opened the doors of the Shangri-La Guilin, the city’s first international luxury hotel to offer exclusive cruises down the Li River.

Located on the banks of the Li, the Shangri-La Guilin is packed with the features sought after by high-end jetsetters both international and domestic: it has the largest guestrooms, largest conference facilities and meeting halls in the city; it’s the first hotel in Guilin to feature both indoor and outdoor swimming pools; it is the only hotel with a wedding pagoda. These modern comforts, along with the unique tourism packages offered by the Shangri-La, which cater to everyone from the time-starved exec to the (well-heeled) global traveler, set it miles apart from the competition.

Since the Shangri-La Guilin will likely attract the kinds of tourists who rarely venture off the beaten track, the hotel will offer tourist packages that highlight the best the area has to offer, its mix of ancient and modern, with luxury cruises up the Li River. These tours, which the hotel will offer starting this week through October 31, include two nights in an Executive suite, a 90-minute guided river tour, and other perks like a lavish four-course dinner served by the hotel’s executive chef himself. Though everything in this package sounds nice, the river tour should be of particular interest to first-time visitors to Guilin.

Li River cruises will give visitors a chance to see Guangxi's famed karst mountains

On the 10 km river tour, which passes 10 of Guilin’s most famous tourist sites, including karst mountains and famous rock formations like Elephant Trunk Hill, Fubo Hill, Seven Star Hill and Laoren Hill, guests will be serenaded and treated to a classical Chinese guzheng (plucked zither) performance along the way. A perfect way to take in the sights and sounds of one of China’s most pristine natural landscapes without sacrificing any of the comforts of a true five-star vacation.

More information on the new Shangri-La Guilin can be found on the company’s website.

Anthony Bourdain visits Harbin and Yabuli Sun Mountain on the next episode of "No Reservations"

Although spring is just around the corner, Yabuli Sun Mountain, China’s top ski resort (previously on Jing Daily), will get some of its first exposure to American television audiences this month when it is featured in an episode of chef Anthony Bourdain’s “No Reservations.” According to Melco China Resorts, Yabuli’s parent company, the episode — “China” — will include on-snow moments filmed both at Yabuli and in the neighboring city of Harbin.

“Anthony Bourdain: No Reservations“, which airs throughout Asia, South America, Africa, Europe and North America on the Travel Channel and Discovery Channel, reaches an estimated satellite audience of 95 million people. Considering Yabuli is pulling out all the stops to attract more international visitors, appearing on Bourdain’s show should give the resort some much-appreciated exposure. While we don’t have word on what unusual foods Bourdain sampled on his trip to Harbin and Yabuli, we can assume some Russian-influenced dishes, local caviar, and copious amounts of Harbin Beer were consumed along the way. It’s relatively safe to say that the area’s ancient delicacies of bear paw and tiger stayed off the menu.

Although we’ll wait until the episode airs to say whether Bourdain enjoyed the food at Yabuli and Harbin, he seems to have enjoyed himself, saying, “Sun Mountain Resort, Yabuli, is a testament to China’s bright future.”

“Anthony Bourdain: No Reservations” — “China” will air March 15 on the Travel Channel and Discovery Channel.

China has been one of Audi's most loyal and profitable markets for the last 20 years

The luxury car market is a contentious place in China, with the world’s top automakers throwing their weight (and money) behind massive marketing campaigns, and many increasing output at their joint-venture factories. For Audi, perhaps more than any individual manufacturer, the China market has been more than just an opportunity, it’s been a goldmine. As the first premium automaker to manufacture domestically in China, Audi has established a firm foothold in the country over the past 20 years, becoming synonymous with luxury in the minds of many Chinese car lovers.

A quick glance at Audi’s recent sales figures indicates why the company’s love affair with China should show no signs of fading any time soon. Of the 75,900 vehicles sold by Audi around the world last month, 15,108 were sold in mainland China and Hong Kong, compared to 15,647 in Audi’s home country of Germany. While these figures are impressive enough, it’s important to point out that this marks a 62% rise, year-over-year, in Audi China sales for that month. Analysts are projecting that, within the year, China will surpass Germany as Audi’s largest single market, a trend that’s not totally unexpected yet has major symbolic meaning.

From the Wall Street Journal:

In January and February [of this year], Audi sold 31,906 cars in China, up 86% year-on-year, compared with 27,304 cars in Germany, up 1.7%. Audi previously has said it expects China to become its largest sales region in 2012 or 2013.

China proved to be one of the few bright spots for luxury-car makers when demand evaporated in other major markets amid the economic downturn and is now driving the segment’s recovery.

Audi emerged from last year’s industry gloom relatively unscathed and narrowed the gap to its larger premium-brand rivals BMW AG and Daimler AG’s Mercedes-Benz marque last year due mainly to its strong presence in China and a smaller exposure to the troubled U.S. market.

Audi ranks third in global luxury-car sales behind BMW and Mercedes-Benz, but it retains a firm grip on the top position in China, which it gained thanks partly to the early market entry of its parent company. Audi plans to launch its A3 hatchback in China this year and aims to ramp up local production as well as expand its dealership network.

Audi seems to be planning smartly in China, with the introduction of more middle-class-focused models like the A3, which should appeal to younger urban buyers and help the brand get further away from its image in China as a car for middle-aged bureaucrats. However, as Jing Daily wrote last month, it’s not beyond the realm of possibility that Volvo — whose sale to China’s Geely Automobile should close within the next few months — might start to take Audi’s place as the de facto government vehicle — a potentiality that might dent sales a bit, but which could ultimately help the company appeal more to the growing twenty- and thirty-something middle class.