Contemporary Chinese artists have long been marginalized in China as their ideas conflict with the mainstream political ideology. In Beijing, artists often live on the fringe of society in “artist villages,” where they almost always face the threat of being displaced owing to political decisions or urban renewal. However, in the past decade, the Chinese government began to foster the growth of contemporary Chinese arts and designated underground artist villages as art districts. This article explores the profound change in the political decisions about the art community. It argues that, despite the pluralization of Chinese society and the inroads of globalization, the government maintains control over the art community through a series of innovative mechanisms. These mechanisms create a globalization firewall, which facilitates the Chinese state in global image-building and simultaneously mitigates the impact of global forces on domestic governance. The article illuminates how the authoritarian state has adopted more sophisticated methods of governance in response to the challenges of a more sophisticated society.