Policy Barometer: In-depth Interpretation of New Regulations in the Gemstone and Jewelry Industry for 2024 and Market Outlook


Industry Observation


In 2024, the global gemstone and jewelry industry is undergoing a transformation driven by significant adjustments in policies and regulations. From origin traceability to consumer rights protection, the introduction of a series of new rules has undoubtedly injected new vitality into this traditional industry, while also bringing considerable challenges. This issue of 'Jade AI' will focus on the latest policy developments, deeply analyzing their impact on the Chinese and global jade markets.


I. Chinese Market: Standardization and High-Quality Development Under Strict Regulation


As one of the world's largest jade consumer markets, China's policy trends have a pivotal impact on the industry. On March 15, 2024, the State Administration for Market Regulation, in conjunction with the Ministry of Commerce and the General Administration of Customs, issued the 'Guiding Opinions on Strengthening Quality Supervision and Management of Gemstone and Jewelry Products' (hereinafter referred to as the 'Guiding Opinions'). This document clearly proposes to establish and improve a full-chain quality traceability system 'from mine to market' and strengthen supervision over emerging sales channels such as live streaming e-commerce and social e-commerce. Mr. Shi Hongyue, Secretary-General of the Gems & Jewelry Trade Association of China, stated in an interview with our publication: "The introduction of the 'Guiding Opinions' aims to combat counterfeiting, false advertising, and other irregularities, protect consumers' legitimate rights and interests, and promote the development of China's gemstone and jewelry industry towards standardization, branding, and high quality."


Specifically, the new regulations require gemstone and jewelry enterprises to clearly display product identification certificate information, encourage third-party authoritative institutions to conduct testing, and put forward higher requirements for the qualifications and responsibilities of appraisal institutions. According to incomplete statistics, as of the first quarter of 2024, over 150 gemstone and jewelry appraisal institutions nationwide have undergone special inspections, with about 5% of them ordered to rectify due to unqualified credentials or violations. This initiative has effectively enhanced market transparency and boosted consumer confidence. Data shows that in the first half of 2024, consumer complaints regarding gemstone and jewelry products decreased by 12.5% year-on-year, indicating a gradual improvement in the market environment.


II. International Perspective: ESG Principles and Sustainable Development as the New Normal


Globally, ESG (Environmental, Social, and Governance) principles are profoundly influencing policy-making in the gemstone and jewelry industry. Although the 'EU Battery Regulation,' officially implemented by the European Union in January 2024, directly targets battery products, its requirements for supply chain transparency, recycling, and carbon footprint disclosure also provide a reference for resource-intensive industries like gemstones and jewelry. Gaetano Cavalieri, President of the World Jewellery Confederation (CIBJO), has repeatedly emphasized that sustainable development is the lifeline of the future jewelry industry.


Especially in the diamond and colored gemstone sectors, the resistance to 'conflict minerals' and advocacy for responsible sourcing have reached unprecedented levels. For example, the US and Canadian governments are exploring further tightening restrictions on the import of Myanmar jade to ensure these jades do not originate from conflict-affected areas. This policy is expected to impact the global supply and price of Myanmar jade. It is projected that by 2025, over 70% of global jewelry brands will adopt responsible sourcing guidelines that meet international standards, which will not only be an ethical requirement but also a crucial component of market competitiveness.


III. Market Outlook: Challenges and Opportunities Coexist


The implementation of new policies and regulations has undoubtedly increased the operating costs for gemstone and jewelry enterprises, especially in terms of traceability system construction and compliance review. However, in the long run, this is an essential path for the industry to achieve healthy and sustainable development.


Opportunities:



    • Enhanced Brand Trust: Strict regulation helps eliminate inferior products and unscrupulous businesses, and consumers will be more inclined to choose products with brand assurance and transparent information.

    • Application of Emerging Technologies: The application of technologies such as blockchain and big data in traceability and anti-counterfeiting will accelerate, providing technical support for industry upgrades.

    • Rise of Green Consumption: Jewelry products that comply with ESG standards will be more favored, prompting enterprises to transition to sustainable supply chains.


Challenges:



    • Compliance Pressure on SMEs: Some small and medium-sized enterprises may face a lack of technology and capital, making it difficult to quickly adapt to new regulations.

    • International Trade Barriers: Policy differences between countries and regions may increase the complexity of international trade.

    • Consumer Education: Improving consumer awareness of new regulations and product information still requires joint efforts from the industry.


In conclusion, the gemstone and jewelry industry in 2024 stands at an important crossroads. The tightening of policies and regulations is not a restriction but a guide for the industry towards a more mature, transparent, and sustainable future. Those enterprises that actively embrace change and adhere to honest operations will undoubtedly stand out in the fierce market competition and win the favor of consumers and the market. We look forward to a more standardized, healthy, and prosperous new era for gemstones and jewelry.