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This requires China to address new challenges, such as sourcing enough gemstones to satisfy import and export demand (figure 2). China’s consumption of gemstones, both for export and the domestic market, has led to supply shortages and intense competition at mining sources and markets worldwide. In 2010, China overtook Japan to become the world’s second-largest economy after the United States (table 1).

Overall, China’s annual growth rate has averaged around 10% over the last 30 years (Barnett, 2013).

They were transferred to China in 19, respectively, under the “one China, two systems” policy.

By virtue of their SAR status, Hong Kong and Macau enjoy a high degree of autonomy.

A 7.6% predicted growth may seem low compared to the years of double-digit growth over the past three decades, but it is still quite enviable when compared to growth rates in the U. The predicted growth rate is certainly very respectable for the world’s second-largest economy, with a GDP over trillion (table 2).

Although the recent global economic crisis has affected domestic sales, the Chinese gem and jewelry industry shows great potential for growth.Unofficially, there are 59 cities in the second tier, 92 in the third, and 105 in the fourth (Schuster, 2012).Second-tier cities are rapidly developing into commercial centers, and this is reshaping the country’s commercial, industrial, and regulatory landscape (Schuster, 2012).With rising costs of labor and land in first-tier cities, manufacturing has moved into second-tier cities and continued into the lower tiers.Government reforms have helped fuel this development.

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Major retailers such as Chow Tai Fook and Chow Sang Sang have recognized the potential of these lower-tier cities for years, aggressively moving manufacturing efforts into these areas. Hong Kong and Macau are the only Special Administrative Regions (SARs) of the People’s Republic of China.