Diamond polishing units from Surat, which are struggling to survive due to the global financial crisis, are turning to China to expand their businesses. China, which has shown admirable resistance to the recession, is becoming a new home for Surat diamond traders. Diamond businessmen are now rushing to set up retail shops in urban areas of southern China such as Shanghai and Beijing.

While the United States is the largest diamond market in the world, the scope of its imports in December 2008 dropped by nearly 25.72%, and it is estimated that the demand for polished diamonds from Asian markets such as China, Taiwan, Korean, Hong Kong and Singapore will match the demand for US diamonds within the next five years.



According to the GJEPC, India posted polished diamonds exports of $4.66 billion in Q2 2009, dropping 5% from the corresponding period last year. The Chinese authorities are offering incentives for diamond processing units, which gives it an advantage over India. Although India offers cheap labor, China has modern processing equipment, which together with the benefits it offers, can allow diamond traders to set up processing units in the country with better prospects.