Since the 1980s, the Chinese economy has been booming thanks to a booming manufacturing industry. China has a growing middle class and an ever-increasing demand for luxury goods.
In a report published by the American website Modern Diplomacy, the writer, Laura Rong, said that China does not have large diamond reserves compared to Russia, however, the country is compensating for the lack of resources by controlling diamond reserves in Africa and producing industrial diamonds at prices. Reasonable.
The development of the diamond industry in China has been delayed
China's diamond industry is lagging behind due to a lack of resources in diamond mines locally and abroad. According to a report issued by Frost & Sullivan in 2014, China is still developing its overseas diamond market, and there are only a few Companies that can supervise diamond mines.
According to Frost & Sullivan, the Hong Kong-based jewelry chain Chow Tai Fook, as a subsidiary of De Beers, sorts, evaluates and sells about 35% of the world's rough diamonds. Well-known diamond polishing factories to extract rough diamonds directly from mining companies, it has also entered into supply agreements with the Rio Tinto Group, Alrosa and De Beers.
Chow Tai Fook has 4 diamond cutting and polishing factories, two in South Africa, one in Botswana and one in China.
However, there are some other famous Chinese companies in the field of diamond processing that cannot buy rough diamonds directly from the market, which makes them mainly produce industrial diamonds, and if they want to process rough diamonds, they can only buy raw materials from secondary markets whose prices are High, which leads to higher production costs.
On the other hand, India - which is the largest diamond processor in the world - has more than 60 companies that are certified to sell directly to distributors, and has access to a number of major diamond mines. For a long time, India has relied on suppliers from Russia and Africa and diamond trade centers on Like Antwerp, Tel Aviv and Dubai to buy rough diamonds.
Most of the diamonds produced in the world are shipped to India to be sliced and sharpened and then go to the global retail market. In this way, India dominates the diamond processing industry.
It is important for China to enhance the professional skills of workers to improve the overall efficiency of the diamond processing industry (European News Agency)
African mines
China undermines India's monopoly on diamond processing under the Belt and Road Initiative by securing deals with companies and governments that control African diamond mines. As a result, China's diamond exports rose by 72% by 2014, resulting in $ 8.9 billion in revenue. .
The countries and regions that signed the Belt and Road Initiative in Central and Southern Africa, such as South Africa, The Gambia, the Democratic Republic of the Congo (Zaire), Botswana, Zimbabwe and the surrounding areas, are the most famous sources of rough diamonds and their production sites in the world.
In recent years, the Chinese investment company Anjin has been negotiating with the government of Zimbabwe over diamond exploration resources, as Zimbabwean President Emerson Mnangagwa recently granted it new powers to prospect for diamonds.
This came 4 years after the company was expelled from the mineral-rich region along with other miners claiming that it had declared less than its actual revenues in 2016, and in the meantime, Alrosa signed a number of agreements with the Zimbabwe Diamond Consolidated Company to establish a joint venture. Of the primary diamond deposits in Zimbabwe.
The author pointed out that the combination of Chinese craftsmanship and high-quality rough diamonds is bound to be a huge opportunity for the global market in the future, besides, it is important for China to enhance the professional skills of workers to improve the overall efficiency of the diamond processing industry and the level of production, and with the launch of China in Increasing investment in the Belt and Road Initiative project, Chinese companies may find more opportunities in Africa in the future.
China compensates for the lack of resources by controlling diamond reserves in Africa and producing industrial diamonds at affordable prices (European News Agency)
Industrial diamonds
According to a Frost & Sullivan report, the global market for rough diamonds will lead to a shortfall of 248 million carats by 2050, and by developing its technology in industrial diamond production, China has found another way to develop its diamond industry.
In recent years, the industrial diamond industry in China has expanded along with the increasing global demand for Chinese industrial diamonds. According to a report issued by Leadleo on the industrial diamond industry in China, as of the end of 2018, there were 8,278. A company that provides equipment, materials, powder, composite plates, tools and products for the diamond industry in China. The top 5 leading companies in this industry monopolize about 80% of the market share and have a high position in it.
In terms of the geographical distribution of the industry, most of the leading industrial diamond companies are located in Henan Province due to the preferences of local government policy, in contrast, small diamond manufacturers are concentrated in Anhui Province, and on the technical level, the low-end sectors of the artificial diamond industry in China have developed their market efficiency. Global by improving the quality of its products to reach international standards.
On the contrary, there is still a long way to go for Chinese companies that manufacture high-quality diamonds, as there is a big gap between them and leading global manufacturers such as Element Six in the United Kingdom, which is one of the best manufacturers of high-quality industrial diamonds. Therefore, many industrial diamond companies in China are currently working on enhancing their technology, and striving to achieve breakthroughs to meet various global customer requirements, and collect more significant profit margins.
The diamond industry in China continues to gain great importance, and with the development of the industrial diamond industry and the increase in access to African mines, China hopes to achieve more achievements in the diamond industry in the near future.