MIL-OSI China: Technological upgrading vital to competitiveness of Luohu’s gold and jewelry industry

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Source: China State Council Information Office 2

Since the first jewelry manufacturing enterprise of Shenzhen was founded in Shuibei of Luohu district in 1981, the zone now known as Shuibei-Buxin has developed into the largest gold and jewelry industry site in China.
The zone’s trade volume of physical gold and platinum accounts for 70%of the physical delivery volume of the Shanghai Gold Exchange, and the actual use of diamonds in the zone takes about 80%of the overall import volume of the Shanghai Diamond Exchange.
In the face of increasingly fierce competition from abroad, practitioners of the Shuibei-Buxin zone have taken the initiative to improve the resilience and added value of the industrial chains, and are seeking innovations in trade, design and manufacturing of jewelry products to maintain the zone’s competitiveness.
Statistics of the Luohu tax bureau indicates that, as of July 13, the district has 18,623 companies in the gold and jewelry industry, and has more than 40 famous brands in the design, sales and wholesale business of gold and jewelry products. The district has so far attracted more than 10 gold and jewelry enterprises listed on the stock market.
The district founded a committee of the Communist Party of China for the gold and jewelry industrial chains to give full play to the Party organizations’ strengths to optimize the distribution of resources.
The district has built a public service platform, which covers an area of more than 13,000 square meters, for designers, funds jewelry designers to go abroad for further education, and set up an association of jewelry designers of Shenzhen that has founded a branch in Italy.
Since the zone relies heavily on import for diamonds and colored gems as raw materials. Luohu set up a bonded service trade platform, which started functioning from Oct 21 last year, and cooperates with the Shanghai Diamond Exchange to offer services whereby buyers in Luohu can examine the raw materials at home on the bonded logistics and supply chain platforms overlooked by the customs and government before paying tariffs.
This service has helped the enterprises reduce transaction costs and control risks.
Luohu hopes its gold and jewelry enterprises can take opportunities to participate in the making of industrial rules and standards in the world, striving for more say in the international market.
The district also pays special attention to the protection of the intellectual property rights, seeing it as a foundation for the high-development of the industry. The government also offers a channel for enterprises to securitize their IPR so that they can obtain more liquidity in their business.
Since 2018, the district has been providing all kinds of supports in policy and subsidy to prompt the enterprises to upgrade their production and designs, and develop their own brands.
The district strengthens quality inspections of the gold and jewelry products through cooperating with the National Gemstone Testing Center to guarantee an orderly and healthy competition in the market.

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