Israel's Diamond Exports to China Could Boom


September 29, 2003

Israel's Diamond Exports to China Could Boom

"China has the potential to become Israel's second largest export market, after the U.S.," says Shmuel Schnitzer, president of the Israel Diamond Exchange and the World Federation of Diamond Bourses. Schnitzer met with leading Chinese officials who asked him to serve as a consultant to the developing industry there. He has also been invited to speak at the International Diamond Summit Forum in Shanghai in November about the development of the Israeli diamond industry and relations between the industry and the Israeli government.

"The Chinese government understands that it must liberalize its policy of taxation on diamonds in order to expand the import of diamonds to China, in light of the increased demand for polished diamonds there," says Schnitzer. Approximately 12% of Israel's diamond exports go to Hong Kong, which represents a gateway to the Far East, especially China. Polished diamond sales to China increased 47% in the first half of 2003, to reach $55 million. "Recently we have seen closer trade ties between members of the Israel Diamond Exchange and the Shanghai Diamond Exchange, in an effort to expand Israel's polished exports to China," Schnitzer says.





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