The Third AAC (Artron Art of China) 2008 Awards, that brought together celebrities, artists, critics, curators and art journalists, was held last weekend at the Museum of Central Academy of Fine Arts.

The awards honored "the most influential participants in Chinese art" last year, including artists, art publishing houses, art galleries and art museums, according to Gao Minglu, a renowned art historian and chairman of the 18-member jury for the awards.

Among the notable winners are conceptual artist Cai Guoqiang, better known as special visual effects director for the Beijing Olympics Opening and Closing Ceremonies, deputy dean of the Central Academy of Fine Arts Xu Bing and veteran oil painter Liu Xiaodong.

The three shared the most coveted award of "Artists of the Year".

Cai is away at another exhibition in Bilbao, Spain, and had a friend read out his thank-you note.

"My solo exhibition, held at the same time as the Games, shows a Chinese artist's lonely, uncertain journey. The occasional winning of awards offers consolation to an artist as it means there are people who like his works."

Cai's retrospective exhibition I Want to Believe which drew thousands of viewers in New York and Beijing in 2008 was named "Exhibition of the Year 2008".

Xu Bing is a world-renowned artist who has won a string of international art awards. Last year, he returned to Beijing and was appointed deputy dean of the Central Academy of Fine Arts.

His return and role as an art educator in China's No 1 art education institute is considered a significant event.

"An experienced artist brings in new ideas, concepts and fresh methods of teaching to the academy, which is important for cultivating China's future artists," explains Gao Minglu, predicting that more and more Chinese artists who have carved out a name at international art venues will play an active role in China's art education.

"The year 2008 was exceptional for Chinese people and for Chinese artists as we experienced both great sorrow and great joy," points out Wan Jie, chairman of Artron Inc, a key organizer of the awards.

Three special awards were given to 29 Chinese artists, who painted a mammoth oil work entitled Warm Blood May 2008, China Guardian Auctions and China Poly Auctions; and Sichuan-based art critic Lu Peng, and long-time artist-philanthropist Fan Zeng, who jointly raised more than 250 million yuan ($36.5 million) for earthquake relief in Sichuan.

The Artron Chinese Art Market Report 2008 and Chinese Art Market Confidence Report were also revealed at the gala event.

The report shows that sales in Chinese auctions last autumn plummeted to almost half of that of the same period the previous year, with oil paintings and contemporary art bearing the brunt of the drop. It predicts that the art market, especially auctions, will be hard hit by the recession.

However, "whatever happens in the art market, an artist should try his or her best to bring out the best works. I think that is crucial to the future growth of the Chinese art market," says Wang Guangle, who has been named Young Artist of the Year twice.

"We must pay more attention to art itself, and not the art market."