Taiwanese jewellers looking to golden future on mainland

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Updated: 2003-03-27 09:40

Taiwanese jewellers are waiting expectantly for a loosening of the Chinese mainland's gold licensing system so they can expand into the market, according to the island's peak jewellery body.

"We are showing strong interest in the coveted market, but our business is being limited by the mainland's gold licensing system," said Huang Haoquan, chairman of the Taiwan Jewellery Trade Council.

The system requires firms which want to produce, process, wholesale and retail gold on the mainland to obtain authorization from the People's Bank of China.

Only 450 firms have so far been approved. There are about 10,000 retailers on the mainland.

"The system has restricted the development of the jewellery business where gold is used as ornaments," Huang said.

Due to the system, Shanghai - one of the mainland's jewellery centres - is still in its embryonic stage compared with the island, he said.

"It will develop fast when the licensing policy is loosened," Huang said.

Huang told China Daily the council will lead a delegation of 25 Taiwanese jewellery companies to the Jewellery Expo Shanghai 2003, their first foray into the mainland's exhibition circuit.

The four-day expo will be held at the Shanghai Exhibition Centre on April 24. It will have more than 150 companies from 15 countries in attendance.

According to Wang Yongqing, deputy secretary-general of one of the co-sponsors, the Gemmological Association of China, the licensing system is on the way out.

The State Council has issued a document about a change in regulations but it does not say when the new policy will come into effect.

Under the new policy, companies only have to register themselves with the local industry and commerce administrations if they want to conduct business on the mainland in gold, rather than applying for a licence.

Over the past two decades, the value of gold and jewellery ornament sales on the mainland has jumped from 160 million yuan (US$19 million) to last year's 100 billion yuan (US$12 billion).

Insiders say sales will increase rapidly after the loosening of the existing system.