Policy Barometer: Deep Dive into 2024 Regulatory Updates and Market Opportunities in the Gemstone and Jewelry Industry

Policy Barometer: Deep Dive into 2024 Regulatory Updates and Market Opportunities in the Gemstone and Jewelry Industry

Industry Observation

In 2024, the global gemstone and jewelry industry is undergoing a profound transformation, particularly at the policy and regulatory level. Governments worldwide and international organizations are introducing new regulations aimed at enhancing industry transparency, combating illicit trade, protecting consumer rights, and promoting sustainable development. These policies are not only having a far-reaching impact on the traditional jade market but also creating new development opportunities for compliant businesses.

Overview of Domestic and International Policy Developments

In China, the State Administration for Market Regulation (SAMR) released the “Draft for Comment on the Standards for Gemstone and Jewelry Appraisal and Valuation Services” in March this year, emphasizing the independence of appraisal institutions, the professional qualifications of appraisers, and the standardization of appraisal reports. According to data from the National Gemstone Testing Center (NGTC), the national complaint rate for gemstone appraisals decreased by 15% year-on-year in 2023, but 2.3% of complaints still involved inconsistent appraisal standards. The introduction of new regulations will undoubtedly further standardize the appraisal market and boost consumer confidence.

Internationally, the European Commission published the final text of the “Corporate Sustainability Due Diligence Directive” (CSDDD) in May this year, which requires companies to conduct due diligence on human rights and environmental impacts across their entire value chain. For the jade industry, which is highly dependent on global supply chains, this means higher compliance costs and stricter social responsibility requirements. Gaetano Cavalieri, President of CIBJO (The World Jewellery Confederation), stated in a recent interview with 'International Jewellery News': “CIBJO is actively working with member states to help businesses understand and adapt to these new international standards, especially regarding traceability requirements for raw material sourcing.”

Impact and Challenges on the Jade Market

The impact of new policies on the jade market is evident. Firstly, increased costs. For example, to comply with traceability requirements, businesses may need to invest more capital in establishing blockchain technology platforms or participating in third-party certification systems. According to the Gem & Jewelry Trade Association of China (GAC), it is estimated that small and medium-sized enterprises will see an 8%-12% increase in compliance spending in 2024. Secondly, higher market entry barriers. Non-compliant businesses will be eliminated from the market, which will promote industry consolidation and foster a healthier, more standardized market environment.

However, challenges also harbor opportunities. For businesses that can actively embrace new regulations and plan ahead, this will be a crucial period for enhancing brand image and gaining consumer trust. For instance, some major domestic jade enterprises, such as “Chow Tai Fook” and “Lao Feng Xiang,” have already begun to introduce traceability certificates and green procurement standards in their high-end product lines to meet the growing consumer demand for sustainability and transparency. According to Deloitte's 2023 'Global Consumer Insights Report', 72% of Chinese consumers expressed willingness to pay a premium for jewelry products with clear traceability information.

Emerging Technologies Empowering Compliance

In the face of complex policy environments, technology has become a vital aid for corporate compliance. Blockchain technology's application in jade traceability is maturing, capable of recording every step of a jade piece from mine to consumer, ensuring immutable information. AI-assisted appraisal and big data analytics are also helping businesses conduct risk assessment and compliance management more efficiently. For example, the “Jade Technology Park” in Ruili, Yunnan, is piloting the use of AI image recognition technology for preliminary screening of incoming raw jade stones, significantly improving inspection efficiency and accuracy.

Future Outlook and Recommendations

Looking ahead, policies and regulations in the gemstone and jewelry industry will become stricter and more refined. We recommend that industry enterprises:

• Closely monitor policy dynamics: Stay informed about the latest domestic and international regulations and assess their impact on business operations.


• Strengthen internal compliance building: Establish a sound compliance management system, train employees, and ensure all business activities comply with regulatory requirements.


• Embrace technological innovation: Actively introduce technologies like blockchain and AI to enhance supply chain transparency and management efficiency.


• Reinforce brand building: Gain consumer trust and build a sustainable brand image through transparent procurement processes and responsible business practices.

2024 is both a “compliance year” and a “transformation year” for the gemstone and jewelry industry. Only those enterprises that can adapt to the new normal and actively meet challenges will stand out in the fierce market competition and achieve sustainable development.