The demand for polished diamonds in India and China may soon reach the same level as its American counterpart, and will position them as the biggest diamond consumers in the next decade – at least according to a recent precious stone global demand review by the world's largest diamond mining company De Beers.

Gareth Penny, Managing Director of De Beers, said that China, Hong Kong and India "would (eventually) account for the one-third of the global demand for the precious stones as diamond engagement rings, and other diamond-studded Jewelry are fast becoming a rage among the youngsters, especially among the Indian and the Chinese bride.

"About two decades ago, hardly any Chinese or Indian brides received diamond engagement rings. But, now nearly half of the couples getting married in these countries are buying them," he added.

In 2009, the United States accounted for about 40% of global diamond demand, with China and India around 6%-7%. However, De Beers forecasts that China would soon account for 16% of the global diamond demand and India for the same percentage by 2016.

A recent KPMG study suggested India's 2010 jewelry sales will near $21 billion, and may reach $37 billion by 2015.

Currently, out of eight key world retail markets, the US accounts for 45% of all jewelry sales, including diamond, platinum, gold and others. India and China, which follow with 8.3% and 8.9%, will emerge as the market equivalent to the US by 2015.

Industry sources said the diamond jewelry demand in India is expected to see a 50% hike by 2012, a from the current $4.2 billion diamond trade jewelry sales, attributed to rising gold prices and the fast growth popularity of the diamond-studded Jewelry among the Indians.

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China inaugurated a new Jewelry Culture and Creative Industry Association office in Shenzhen is May.

During the ceremony, CIBJO President Gaetano Cavalieri said that “China has firmly established itself as a major consumer market and manufacturing center. It now is time to assert itself as a force in jewelry design, and put its stamp on the industry."

China is indeed set to take the jewelry world storm: the Shanghai Diamond Exchange (SDE) trade volume in the first quarter of 2010 came to a record high of $559 million – a 91.1% increase (year-on-year), according to recent statistics from the Diamond Administration of China (DAC).

China's diamond imports and exports increased by 100.7% to $524 million, while net imports increased 127.5% percent to $261 million – most of which came from Belgium, India, Israel and South Africa.

With that kind of performance, Beijing is more than ready to become a force in jewelry and diamond industry.

Cavalieri recognized China’s progress into a significant force in the jewelry industry, and stressed it also now has a responsibility to others in the global jewelry sector: “It is most important to remember that we are an international market, and that what happens here in China impacts throughout the global chain of distribution, just as what happens elsewhere will have an effect on the Chinese business.

“In our industry, it is extremely likely that any item of jewelry represents the combined efforts of literally thousands of people living in different parts of the world.

"Every single individual who was in some way responsible for the manufacture of an item of jewelry – from the miner to the refinery worker, to the diamond cutter and the jewelry designer, the manufacturer and the retailer – plays a critical role in the process.”

The Jewelry Culture and Creative Industry Association office inauguration coincided with the Shanghai World Expo 2010, which saw 189 participating countries.

An estimated 70 million visitors are expected to visit Shanghai, during the six-month expo, 95% of them Chinese nationals.

Tens of thousands of visitor are expected to visit the Diamond Exhibition Corner of the Expo, which will display modern jewelry designs and illustrate the history of diamonds.

In addition, Antwerp’s 550-year diamond heritage will be illustrated with ten of the most prestigious antique diamond jewels from the Diamond Museum of the Province of Antwerp, together with the world-famous European Community Championship (ECC) diamond tennis trophy, a tennis racket made of 3.2 pounds of gold and 1,600 diamonds with a total weight of 150 carats, all perfect “Cut in Antwerp” gems.

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It seems that British-Australian mining giant Rio Tinto is eying the world’s second largest diamond market – China. 

Rio Tinto will be opening a Hong Kong office, which will join Rio Tinto’s diamonds sales and marketing branches in Belgium, India and the US. The move aims to support the marketing of all rough diamonds from Rio Tinto’s mines.

Rita Maltez has been named head of the Chinese operation. Maltez has been with Rio Tinto since 1999, and has been involved in the development of the company’s emerging markets strategy for diamonds.

“This is a strategic decision that reflects Rio Tinto’s long term commitment to the diamond industry and the important role that China will play in this future. We look forward to fostering new relationships as China’s development continues,” Jean-Marc Lieberherr, the diamond miner’s general manager of diamonds sales and marketing, said.

Rio Tinto stated that the new Hong Kong office will facilitate the development of a market in China for its diamond productions, and customers’ activities.

The astronomical growth China has experienced in the last decade, including during the global financial crisis, has created a new nation of consumption, which is nearing western proportions. With 1.3 billion and counting, the highest number of young millionaires and new companies opening daily, it’s no surprise that many international companies – from everyday fashions to luxury goods – are looking to expand into China.

One of the secrets to succeeding in China is working with local experts who understand the Chinese market, since penetrating it is not as easy in getting into the more developed, western markets. The only exception seems to be Google.

Google’s entry to China was made somewhat late in the game and only after it seemingly took over most of the world. Nevertheless, Google has recently claimed that the Chinese authorities hacked into users’ email accounts in an attempt to follow human rights activists.  Beijing denied any involvement, but Google has already announced that it was reconsidering its Chinese venture. Will Google be the first company to pull out of the Chinese market? 

A delegation from the Israel Diamond Institute is scheduled to meet with representatives of the Chinese diamond industry, as part of the HKTDC Hong Kong International Jewellery Show, set for March.

Two months ago, a Chinese diamond industry delegation visited Israel for a series of meetings meant to cement the cooperation between the Israeli and Chinese diamond industries. The future, they said following the meetings, is looking bright.