The Beijing Declaration, signed on September 15 by the Shanghai Diamond Exchange and three African diamond-producing countries, aims to strengthen cooperation around natural diamonds. However, while sales at Chinese jewelry retailers are recovering, the upturn is mainly benefiting gold. In a recent analysis, industry expert Avi Krawitz examines the structural changes taking place in the Chinese market, where signs of stabilization have yet to translate into a recovery in global diamond demand.
In September, China, through the Shanghai Diamond Exchange (SDE), Botswana, Namibia and South Africa, signed a joint declaration on natural diamonds and sustainable development. Supported by leading industry stakeholders, including De Beers, the World Diamond Council and the Natural Diamond Council, whose representatives attended the signing ceremony, the initiative seeks to strengthen ties between the signatory countries. It places particular emphasis on the socioeconomic benefits of natural diamonds in producing countries, including employment, training, local value creation and economic diversification. It also aims to improve Chinese consumers’ awareness of diamond origins and their contribution to the development of mining communities.
The initiative comes at a time when China, long the second-largest market for diamond jewelry after the United States, has been overtaken by India. The question now is whether China can once again become a driving force for the diamond industry.
A jewelry market recovery largely driven by gold
In a recent analysis published in The Diamond Press, Avi Krawitz highlights the contrast between the strong performance of major Chinese jewelry retailers and persistently weak diamond demand.
In the first half of 2026, Chow Sang Sang reported a 17% increase in revenue, to USD 1.6 billion. Sales rose by 9% in mainland China and 38% in Hong Kong and Macau. Chow Tai Fook and Luk Fook also reported double-digit growth. However, this recovery is primarily benefiting gold.
While sales of products sold “by weight”, mainly gold, increased by 34% in mainland China and 55% in Hong Kong and Macau, sales of gem-set jewelry declined by 20% in mainland China and rose by just 7% in Hong Kong and Macau. Luk Fook, for example, reported a decline in diamond jewelry sales.
Consumers are favoring gold, both as an adornment and as a safe-haven.
A market that has reached maturity
According to Avi Krawitz, this trend reflects a structural transformation of the Chinese market. In the early 2010s, the massive expansion of jewelry retail networks into third-, fourth- and fifth-tier cities stimulated diamond purchases as retailers stocked their newly opened stores.
That period has now come to an end. Major jewelry chains are rationalizing their retail networks, closing underperforming stores and focusing on more profitable locations. Inventory from closed stores is then redistributed across the network, reducing the need for new supplies.
The most successful retailers are finding new sources of growth, but this does not necessarily mean that demand is increasing across all jewelry categories. As Avi Krawitz points out, a similar situation can be observed in almost every market.
The strong results reported by leading retailers may therefore reflect gains in market share rather than a broad-based recovery in consumer spending. This shift has direct implications for the entire diamond supply chain. An increase in jewelry sales does not necessarily lead to renewed purchases of polished diamonds, increased manufacturing activity or, ultimately, stronger demand for rough diamonds. That would require sustained sales growth, leading to regular replenishment of retailers’ inventory.
The Beijing Declaration: An ambition yet to be realized
In this context, the Beijing Declaration reflects the desire of African producers to strengthen their presence among Chinese consumers. In particular, it seeks to highlight the natural origin of diamonds, their rarity and long-term value, as well as the economic and social impacts in producing countries.
This approach could help differentiate natural diamonds more clearly in the face of competition from lab-grown diamonds and the growing appeal of gold.
However, at this stage, the declaration remains a framework for cooperation, with no quantified commercial commitments or clearly defined implementation timetable. Its effectiveness will depend on the concrete initiatives introduced to raise consumer awareness and stimulate demand.
For Avi Krawitz, the assessment is clear. China is currently not dynamic enough to drive growth in the global diamond market, but it no longer appears to be a major source of further deterioration. While the country seems to have stabilized, providing an encouraging signal for the industry, there is as yet no indication of a sustained recovery. For the time being, gold remains the principal driver of growth.
The Beijing Declaration could certainly help stimulate demand for natural diamonds by raising Chinese consumers’ awareness about their socioeconomic benefits. But it remains what it is: a declaration, Avi Krawitz concludes with a measured observation. It still needs to translate into concrete actions.
Sources: Rapaport and Avi Krawitz
Image: African and Chinese industry members at the signing of the Beijing Declaration (De Beers)