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China Becoming Major Diamond Center
Rapaport News reports this morning that Israel’s Ministry of Industry, Trade and Labor has declared China to be a preferred export target and will set up two permanent trade centers in two of China’s provinces, the ministry said in a press release on July 11. A special committee from Israel will choose the locations, thus ensuring Israel’s permanent commercial trade presence in China.
India, Mexico, and Brazil are already considered preferred export targets by Israel. Under the new plan, two companies in China will be awarded tenders by the end of 2005 and will receive a low flat fee covering overhead costs according to Globes on July 12.
The estimated boost to Israel’s export potential to China is about several hundred million dollars.
Managing Director of Israel Diamond Institute Ephraim Raviv told Rapaport he welcomed the move saying “throughout the world the offices of the ministry provide services to the diamond industry. We are very grateful. This will be a positive step for us. We are in the process of opening an office in New York and are seriously considering opening another office in Hong Kong, both dedicated to the diamond industry.”
China was Israel’s ninth largest export destination for polished diamonds in 2004 with exports reaching $98.1 million.
In 2004, Israel’s total exports to China rose 30 percent to $765 million as compared to $591 million in 2003. Diamond exports to China rose by 16 percent. The increase in Israel’s diamond exports to China is largely attributed to the easing of import taxes on diamonds to China. Diamond exports make up 13 percent of Israel’s total exports to China. Many Israeli owned diamond manufacturing firms have established plants in China over the last couple of years and are listed on the Shanghai Diamond Exchange.
Ah, Capitalism gaining a foothold in China; what would Mao say?
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