Industry Observation
In 2024, the global gem and jade industry is undergoing a profound transformation, with policy and regulatory adjustments undoubtedly being the core driving force behind this change. From origin traceability to consumer rights protection, and further to environmental protection and sustainable development, governments worldwide and international organizations are intensively introducing a series of new regulations aimed at standardizing market order, enhancing industry transparency, and ultimately promoting healthy and sustainable industry development.
Taking the Chinese market as an example, the 'Draft Specification for Gem and Jade Identification Certificates' issued by the State Administration for Market Regulation at the end of 2023, sparked extensive discussion in early 2024. This specification puts forward stricter requirements for the qualifications of identification institutions, identification procedures, certificate content, and information disclosure. According to Chen Hua, Vice President and Secretary-General of the Gem & Jewelry Association of China, “The introduction of the new specification will effectively curb the circulation of counterfeit and shoddy products, enhance consumer trust in identification certificates, and is expected to increase the market share of compliant identification institutions by more than 15% in the next two years.” This move is undoubtedly a positive response to Chinese consumers' growing demand for quality and trust.
At the international level, the European Union's 'Due Diligence and Corporate Social Responsibility Directive' (CSDDD), which came into effect in March 2024, imposes higher requirements on the transparency of jewelry supply chains. This directive requires companies to conduct due diligence on human rights and environmental risks in their supply chains and disclose relevant information. For the jade industry, which heavily relies on global supply chains, this means that from Myanmar's jade mining areas to Zambia's emerald production sites, and down to the retail end, all participants must strengthen compliance management. Gaetano Cavalieri, President of CIBJO (World Jewellery Confederation), pointed out at a recent industry summit: “CSDDD will prompt more companies to invest in traceability technologies such as blockchain to ensure their products meet international standards. We expect the number of jewelry companies globally adopting blockchain for traceability to increase by at least 30% in the next three years.” This trend will significantly enhance the traceability of jade products and boost consumer confidence.
Furthermore, the U.S. Federal Trade Commission (FTC) also updated its 'Green Marketing Guides' in 2024, introducing stricter regulations on the use of promotional terms such as 'sustainable' and 'eco-friendly'. This places higher demands on jade products marketed as 'natural' or 'green'; companies need to provide specific data and evidence to support their environmental claims and avoid false advertising. Li Ming, Marketing Director of a well-known jade brand, stated: “We have already started collaborating with third-party certification bodies to conduct life cycle assessments of our products to ensure our claims comply with the latest FTC requirements. While this will increase costs in the short term, in the long run, it will help build brand credibility and market competitiveness.”
Regarding tax policies, the Indian government made minor adjustments to tariffs on certain imported finished gem and jade products in its 2024 fiscal year budget, aiming to encourage local processing and export. Although the changes are small, this move reflects governments' considerations in trade protection and industrial upgrading. According to a report by the Gem & Jewellery Export Promotion Council (GJEPC) of India, this adjustment is expected to increase the output value of India's domestic jewelry processing industry by 5-8% in the next five years.
In summary, 2024 is a period of intensive policy and regulatory introduction for the gem and jade industry. These new regulations are not only a powerful response to market chaos but also a guide for the industry's future direction. Companies must closely monitor policy trends, actively adjust business strategies, embrace technological innovation, and strengthen supply chain management to gain an advantageous position in an increasingly standardized and transparent market environment. It is expected that in the coming years, companies that are quick to adapt to new regulations and actively fulfill social responsibilities will become the new leaders in the industry.