BRI boosts diamond trade between China and Belgium

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Europe

Chocolate and Beer might be the first things people think about when talking about Belgium. As for trade with China, however, the diamond business is starting to shine under the framework of China’s Belt and Road Initiative.

“When it comes to diamonds, we are talking about very small objects with very high value. We are also talking about a couple of numbers, two digit numbers in our overall trade, which is because of the diamond trade,” said Paul Lambert, Belgian Consul General in Shanghai.

Belgium has long been known as the diamond capital of the world, and more than 80 percent of raw diamonds are handled in the city of Antwerp.

Workers scrutinize diamonds at a polishing diamond workshop in Antwerp, Belgium’s largest port city. /VCG Photo

In 2014, the Antwerp Diamond Exchange and Shanghai Diamond Exchange signed an agreement to develop an exclusive commercial and trade relationship. The agreement commits both parties to increase the diamond trade between China and Belgium by at least 10 percent annually over three years.

“They have been the only legal platform for import and export for diamonds approved by the Chinese government. So all the diamond dealers, both the buyers and the sellers, should get a global reputation after being in the diamond industry for several years. They can do diamond business freely,” said Lin Qiang, President of Shanghai Diamond Exchange.

Besides for trade, the diamond business is strengthening the people-to-people exchange between the two countries.

"They have a diamond institute back in Antwerp, working together with their counterpart in Shanghai. So they invite people to train and vice versa. So there is people-to-people exchange but also high-level exchange," said Consul General Lambert.

Young couple are trying on diamonds in a jewellery shop before this year’s Valentine’s Day in Chengdu, Sichuan Province. Diamond takes up about 20 percent of Chinese jewellery market, but 52 percent in the US. That means diamond business in China is still at the primary stage and the demand is expected to increase, according to China Finance Online. /VCG Photo

As of now, Belgium is China's seventh largest trade partner within the European Union, while China is Belgium's second largest partner outside the EU. Belgium made plans to join the Belt and Road Initiative after Chinese President Xi Jinping paid a state visit in 2014.

Meanwhile, Shanghai and Antwerp have been sister cities for 33 years, and they signed a Memorandum of Understanding last December to increase cooperation.

The total trade between China and Belgium topped 19 billion euros last year. In late March, Belgium joined the Asian Infrastructure Investment Bank, which is an important pillar of the Belt and Road Initiative.

This May, both countries said they are ready to create a level-playing field based on full adherence to market rules and international norms.