After cars and housing, a growing number of Chinese are spending more on jewelry not only for its value, but also its stylish designs.
Annual sales of jewelry in China have reached 100 billion yuan (US$12 billion) and risen eight to 10 percent every year, according to the China Pearl Diamond Gem & Jewelry Import & Export Corporation.
The amount was less than 200 million yuan (US$24 million) in the 1980s. China currently sells 207.5 tons of gold ornaments, a huge rise from 0.7 tons some 20 years ago and the sales volume of platinum ornaments accounts for 52 percent of the world's total, up from merely one percent 20 years ago.
"China's jewelry market has the potential to become the third largest in the world following North America and Europe," said Harald Muller, manager general with a German-based exhibition company.
The company will sponsor an international exhibition on jewelry, silverware and clocks jointly with an Italian-based exhibition firm and the China Arts and Crafts Association at the Pudong New International Exhibition Center in Shanghai from September 19 to 22.
The exhibition, called "Luxury China 2002", is expected to attract 300 jewelers from more than 20 countries and regions such as France, Spain, Belgium, Germany, Italy, India, Japan, the Republic of Korea, Sri Lanka and Thailand.
"Three quarters of the jewelers will come to Shanghai for the first time," Muller said. "They expect to enter the Chinese market and cooperate with Chinese counterparts."
Jewelry is one of the markets China will first open after its formal entry into the World Trade Organization (WTO). According toits promises to the WTO, the country will greatly reduce its tariffs on jewelry and raw materials. The tariff on gems will be ended and that on pearl, silver and gold products will drop from 31 to 33.3 percent to 20 to 21 percent.
The Chinese government is easing controls on gold trading. Enterprises processing and selling gold products do not need a license as before, but can ask for an approval from the administration. Exchanges of gold, silver and diamonds were also established here, considered a huge step to an overall opening of the market.
China's jewelry market is integrating with the world market, Muller said.
With a population five to six times higher than the United States, analysts here noted, China has only one-fiftieth of the jewelry sales of the U.S. The potential market will, beyond any doubt, become reality with the country's economic growth and increase in living standards.
(Xinhua News Agency July 29, 2002)
