Located on Wusi Street, the China Arts Gallery was established in 1962 to exhibit outstanding works of modern Chinese artists.  The gallery has 6, 000 square metres of exhibition space, which is divided into 14 exhibition halls currently housing 10, 000 pieces, not including folk art.  The central part of the gallery, with four floors, has an ancient Chinese pavilion type of roof.  The surrounding flat roofs have skylights to allow for natural lighting.  The building is decorated with glazed tiles, a traditional Chinese construction material.  Many of the walls are paved with light yellow ceramic bricks.  The designer wanted the building to reflect a ceramic art work.  With the development of a market economy, traditional donations from fine artists are now being gradually replaced by sales.  The gallery gathers works through a variety of channels which include purchase from national and local exhibitions and offering of financial aid to some fine artists who will sell their works to the gallery later on.  The research staff at the gallery has done a lot of work for the development of the study of fine arts.  They have published dozens of articles and papers.  From 1962 to 1995, the China Arts Gallery organized over 1, 000 exhibitions covering everything from photography, calligraphy to stamp collections.  Some of the shows were co-ordinated with other galleries such as the China Folk Artistic Works Gallery.  From 1962 to 1977, the total budget for the gallery was 2. 25 million yuan.  Average annual budget since 1978 has increased to 560, 000 yuan.  With profits from hosting exhibitions, the China Arts Gallery has the potential to become the nation's finest arts gallery.