Over 30 speakers from different organizations, companies and governments, as well as over 350 delegates together spanning 21 countries and regions, congregated at Shanghai Huating Hotel & Towers on November 30 and December 1, 2010 for the 2010 China Diamond Conference.

The conference was organised by Diamond Administration of China (DAC), Antwerp World Diamond Center (AWDC) and Shanghai Diamond Exchange (SDE), with the support from Ministry of Commerce of People's Republic of China and Shanghai Municipal People’s Government.

The Conference was sponsored by Dimexon, Rosyblue (Shanghai) Diamond Co. Ltd., Malca-Amit Far East Ltd., KGK Diamonds, Shanghai Laofengxiang Co.Ltd. and Zbird
While the theme of the conference was “World Diamond Industry: How to Enter the New Decade”, the four sub-themes were Recovery; The Market in Future and The Consumers’ Confidence; World Diamond Centers in the Future -- Service Innovation Support Diamond Industry and Mining & Trading - Green Development & Social Responsibility, or the New Policy of the Diamond Producing Countries.

The opening ceremony was chaired by Hailin Sha, the vice secretary-general of Shanghai Municipal Government and chairman of Shanghai Municipal Commission of Commerce and addressed by Shan Zhong, Vice-Minister of Commerce of PRC and Dengjie Tang, Vice Mayor of Shanghai Municipal Government.

Shan Zhong in his welcome address said that the Chinese government gives great importance to the diamond industry and will promote its further development of China through the following ways: supporting faster growth of Shanghai Diamond Exchange, helping the domestic diamond enterprises improve their international competitiveness, promoting the deep exchange and cooperation between China and overseas in diamond sector.

Dengji Tang in his welcome address said that Shanghai will soon complete its economic transformation and industrial restructuring that will restore its status as an international fashion capital and a shopping paradise. Shanghai will try to ensure that the Chinese diamond industry benefits from the rise of a modern service industry and establishment of international trading center in the city, for the purpose of building a world-class diamond exchange center in the near future.

The subsequent sessions of the Conference were addressed by representatives from Antwerp World Diamond Center (AWDC), World Federation of Diamond Bourses (WFDB), World Diamond Council (WDC), International Diamond Manufacturers Association (IDMA), CIBJO, Diamond Federation of Hong Kong, Gem & Jewelry Trade Association of China as well as the associations and companies from China, Belgium, the USA, Russia, Australia, India, South Africa, Netherlands, United Arab Emirates, etc.

Moshe Mosbacher, President of the Diamond Dealers Club, New York drew parallels between the role of the DDC and the role of the SDE, saying, “in many respects, the business models that have been developed in my city and my country over the past several decades are particularly applicable to Shanghai and the Peoples Republic of China." The two cities are financial nerve centres of their country’s economy, and the diamond exchanges based there mainly engage in transactions for the domestic consumer market.

Based on a McKinsey research paper that suggests that Chinese consumer consumption as a share of GDP will only approach the 40 percent mark by 2025, Mosbacher said, “that alone will result in a middle class in China that is approximately double the size of the one in the United States today.”

In such a situation, the role of the diamond exchange in defending consumer confidence is critical, he stated, adding, "For members of the jewellery trade, buying from a diamond exchange defends against reputational risk in the same way that the Kimberley Process prevents the trade in conflict diamonds. ……When you buy from a club member, you know who you are dealing with. This is true in any type of market, but it is particularly relevant in consumer-driven markets like the United States and now China."

Stephane Fischler, Treasurer of the International Diamond Manufacturers Association (IDMA) and chairman of the International Diamond Council (IDC), stressed the need for long-term competitiveness to ensure the viability of the global diamond manufacturing industry.

Within this framework, Fischler introduced and presented the Chinese translation of the IDC Rules. "These will no doubt contribute to enhancing the trust and comfort level of the Chinese consumer in diamonds and diamond jewellery."

Another presentation was by Jean-Marc Lieberherr, General Manager for the sales and marketing of all diamonds from Rio Tinto's mines, said that the company saw that the Chinese market would play an important role in the further development of the diamond industry. “The emerging middle class demographic in China is an ideal entry point for affordable diamond jewellery. Increasingly Chinese consumers will be seeking to differentiate themselves through fashion and fashion jewellery and this will be the driver of future growth in retail diamond jewellery demand.”

In this context, he said that RTD recently launched its strategic partnership with leading Chinese retailer, Chow Tai Fook, to develop a fashion jewellery category, separate to the existing bridal market in China.

Former chairman of the Gem & Jewellery Promotion Council, Vasant Mehta presented insights into the burgeoning Indian Diamond Industry and how India’s leadership position in the global market had developed over the years. He spoke about the India’s superior technological capabilities & efficiency of labour along with Government aid which has helped India establish itself as a ‘Global jewellery Hub’.

“As the world moves into a new era post the crisis, there are many aspects that have changed fundamentally. Key to this is the shift in focus. While the US still remains a large diamond jewellery consuming centre, there can be no doubt that India and China are the centres of the future for the diamond industry on all fronts,” said Mehta.

Calling for co-operation between India and China, he said, “There are those who keep closely monitoring the developments in both these countries as if the two are in a race. However, I believe that there is space for both. There are many Indian companies which are already developing ties, cooperation and relationships with China on many fronts. Taken together the two eastern giants are a formidable force, in every way, whether in sheer numbers of population, of skills, as developing economies and as markets. I look forward to the unfolding of the future in which our two great nations will take centre stage.”

A special highlight was the discussion of the future of the Chinese domestic market presented by Chinese economist Hai Huang, former assistant Minister of Commerce of PRC.

A special session – “Know and Understand China” – was also held in the form of a dialogue between delegations from Ministry of Commerce, Customs, State General Administration for Quality Supervision, China Gemstone Association, Diamond Administration of China and representatives from the World Diamond Industry. Post Conference the SDE also hosted a separate business meeting for the delegates to interact with the local ndustry.

Importance of China

The global diamond industry that was severely affected by the global financial crisis of 2008, has slowly turned the corner in 2010 and newly-emerging countries such as China and India which are rapidly growing diamond jewellery markets have played a key role in the current recovery. Their shares in the world’s diamond consumption market are much higher than before the crisis. The global diamond consumption market has shown some signs of recovery since the second half of 2010, which marks that world diamond industry has been on a recovery.

At present, Chinese diamond consumption has been on the rise and the country is one of the largest importers of diamonds. Polished imports for the first nine months of the year from USA, China (Hong Kong, Macao, Taiwan not included) and Japan were ＄3.1 billion, ＄0.9 billion and ＄0.51 billion respectively. The value of diamond import, export and trade at Shanghai Diamond Exchange was 21.56 billion dollars in total during Jan to Oct this year, with a year-on-year growth of 75.2%. Analysts believe that the Chinese diamond market has a great future, and locally, the next decade is has been described as a golden decade for china diamond industry.

10th Anniversary of SDE

The Shanghai Diamond Exchange completed ten years of existence on Oct. 27 and hosted a special banquet at the Conference in celebration.
The establishment of this diamond exchange at Shanghai started a brand new era for China’s diamond industry. In 2002 and 2006, Chinese government adjusted its supervision policy and taxation policy on diamond import & export, which set a solid foundation for SDE’s development. At present, for diamond import under normal trade, all the tariff is zero, rough diamond’s import VAT is zero, polished diamond’s import VAT is 4%, all the 5% consumption tax is shifted to the retail stage. In 2004, SDE joined World Federation of Diamond Bourses (WFDB). In Oct. 2009, SDE moved into the China Diamond Exchange CenterTower, which covers an area of 49,000 square meters. At present, a diamond trading center has been established in the tower which consist Shanghai Diamond Exchange (SDE), Diamond Administration of China (DAC) and supporting service organizations. With a membership of 281, SDE has become a key platform for diamond import and export under normal trade and diamond transaction in China.

Awarding ceremony of DAC advisors

A special felicitation of the Advisors of Diamond Administration of China (DAC) was another highlight. Each of the advisors was awarded a letter of appointment by Shan Zhong and Dengjie Tang at the ceremony.
DAC’s nine advisors of next three-year term are: Eli Izhakoff, president of World Diamond Council(WDC); Shmuel Schnitzer, honorary life president of the World Federation of Diamond Bourses (WFDB); Freddy Hanard, CEO of Antwerp World Diamond Center; Moti Ganz, president of the International Diamond Manufacturers Association (IDMA); Vasant Mehta, former chairman of the Gem and Jewellery Export Promotion Council (GJEPC); Abbey Chikane, former CEO of South Africa State Diamond Trader; Lawrence Ma, president of Diamond Federation of Hong Kong; Avi Paz, president of World Federation of Diamond Bourses (WFDB) and Dr. Gaetano Cavalieri, Chairman of The World Jewellery Confederation (CIBJO).