China Second Only to India in Diamond Polishing

With polished exports of $788 million in the first nine months of the year, China has become the world’s second largest polishing center after India. Annual exports are expected to total over 3 million carats, worth an estimated $1 billion.

The numbers, originating from the Chinese Customs, are only the tip of the iceberg. China is slowly emerging as a dominant power house in the diamond industry with high quality makes, competitive labor costs, and an emerging market that is starting to cause concern in the Indian market.

More and more Israeli, European and Indian diamond companies are opening Chinese plants, including Russian Kristall of Smolensk, which received a license to export rough diamonds from Russia to its new plant in China.

According to Chinese customs, last year the country imported 11.44 million carats of rough diamonds and exported $803 million of polished diamonds.