Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

By John W. Miller

Source: http://www.wealth-bulletin.com/portfolio/markets/content/4058664442/

DELETE HERE

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

v

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

v

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.

Antwerp gem dealers roll out trade incentives to capture expanding middle class as purchases slow in U.S. and Europe.

This city's diamond district is recovering some of the shine it lost during the financial crisis thanks to a hungry new customer: China.

Exports of polished diamonds from Europe's diamond capital to China, including Hong Kong, increased 55% to $737 million in the first three months of 2010, the Antwerp World Diamond Centre said Tuesday.

That makes China the biggest buyer of diamonds from Antwerp, knocking the U.S., traditionally its largest customer, into second place.

The booming Chinese market, fueled by the world's fastest-growing middle class, is proving a strong antidote to slipping sales in more established markets like the U.S. and Europe. A recent report by consultants KPMG forecasts China will become the world's largest diamond market next year.

For 2010, the AWDC predicted total sales to China of $3 billion, far above last year's $2.3 billion.

Antwerp's diamond polishers, sellers and traders have been suffering narrowing profit margins as mining companies have cut back production at a time when retail prices have been falling. They have also seen cutting and polishing work being outsourced to India, which then sells the stones more cheaply.

The Antwerp diamond industry, the traditional center of the world's market for polished diamonds, is fragmented among 1,800 companies with combined sales of $45 billion a year. As the labor-intensive business of cutting the stones has shifted to developing countries, Belgian diamond firms have increasingly focused on the trading, marketing and final polishing of diamonds. They typically buy stones from miners such as De Beers and BHP Billiton.

"Antwerp is reasonably well situated to compete in China because it has the infrastructure already set up as a trading hub," says Des Kilelea, a London-based diamond analyst for RBC Capital Markets.

But the Belgian city faces tough competition from other diamond powerhouses. India sold $6.6 billion and Israel sold $2.2 billion worth of diamonds to China last year.

The AWDC, the Antwerp industry's organizing body, Tuesday unveiled a full-scale effort to expand in China. Banks, cutters, traders and polishers here say they are courting Chinese diplomats, giving prizes to Chinese jewelry designers and spending millions on trade fairs in China.

"We have a lot of competition, so we must position ourselves to attack...and win in China," said Mickey Weinstock, an Antwerp diamond seller who says his company's $50 million of annual sales are now almost all to Chinese retailers.

In June, the AWDC will finalize a joint venture with the Shanghai Diamond Exchange. The Belgians will provide advice and consulting on the business in exchange for more access to the Chinese market, said Freddy Hanard, CEO of the AWDC.

Last year, the Antwerp High Diamond Council gave 12 of the 30 finalist places in its jewelry-design competition to Chinese designers.

The Antwerp-based International Gemological Institute, which trains gemologists -- the experts who analyze, grade and price diamonds -- is expanding its staff in China to 200 in the next few years from five, says Chief Operating Officer Deborah Pienica. "We're seeing that the new generations in China are less conservative and ready to spend money on diamonds," she says.

The AWDC tapped Mr. Weinstock to set up a wing of the Belgian pavilion at the World Expo in Shanghai, which runs from May to October and is expecting 70 million visitors.

A stand staffed by 45 will show off several million dollars worth of stones cut in Antwerp, including a pink diamond whose 8.8 carats will appeal to the Chinese love of the lucky number 8, Mr. Weinstock said.

The efforts are meant to help jewelers like Jean-Claude Muller, CEO of S.Muller&Sons. He already sells $25 million of diamonds, half his annual take, in China but would like to sell more.