China has become the world second largest diamond processing base, which, in recent years, saw more than 3 million carats of diamond processed and exports valued near $1 billion achieved annually, the Jewelry Association of China revealed at a press conference named "Diamond. China" it held in Beijing Monday.

By now there have been 80-strong companies engaged in diamond processing on the Chinese mainland, most of them located in Fanyu, Conghua of Guangzhou as well as in Qingdao and Shanghai, employing a total staff near 25,000 people. In 2003, China imported 11.44 million carats of rough diamond under processing trade accounts, and processed and exported 3.3 million carats with an export trade volume reaching $803 million. From January to September this year, China imported 10.10 million carats of rough diamond under processing trade accounts and realized an export volume of $788 million. Noticeable increase in diamond processing and export over last year is expected.

China's diamond processing technique won wide recognition and praise from its international counterparts as early as in the mid of 1990s. The name of "China technological level" given to the country's unique diamond processing technology, like similar ones given to Belgium and Israel, turned out an embodiment of full recognition from international diamond industry.

To encourage diamond processing in China, the government formulated a series of preferential policies, including special patterns of customs bond operation, which roused great enthusiasm of investors from home and abroad. It is learned that many countries and regions, such as Israel, Belgium, India, Japan, US, Europe and Hong Kong, are conducting or seeking for cooperation with China on processing trade.

By People's Daily Online