The Jibaozhai Museum in Erpu village, Jizhou, has had its license revoked by Jizhou civil affairs bureau, and its mangers are under investigation, an official from Hebei Provincial Cultural Heritage Bureau, surnamed Li, was quoted as saying in the Global Times.
"Jibaozhai has no qualification to be a museum as its collections are fake and it hasn't reported to my department for approval," Li said.
Founded in 2007, the 4-hectare museum was opened in 2010. With 12 exhibition halls, it cost 540 million yuan ($88 million) to develop.
"This museum has changed the history of porcelain development in China," Ma said.
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One exhibit was labelled a wucai - five-colour - vase from Tang Dynasty (618-907 AD), even though the technique dates from the Ming Dynasty (1368-1644).
Other items were "signed" with simplified Chinese characters reading, "Made by Huangdi," the Yellow Emperor, state-run Shanghai Daily reported.
According to tradition, Huangdi reigned from 2696 to 2598 BC - long before such characters were created.
They say Wang established the museum at a cost of 60 million yuan (USD nine million) and misused village resources by selling land.
Villager Wang Lihua recalled that when Wang Zongquan announced he was collecting antiques in 2005, people came from across the country to Erpu Village to sell goods.
The museum owner had a reputation that "he would buy everything brought to him," claimed Wang Lihua.
Shao Baoming, deputy curator of the museum, insisted that at least half of the exhibits are authentic.
"Most of the exhibits were not verified by experts," Shao admitted.
Museum owner Wang Zongquan claimed that "even the gods cannot tell whether the exhibits are fake or not."
Wang said he had established the museum to promote Chinese culture. He denied misusing village money and claimed he spent 20 million yuan on the collection, all from his own savings.