Chinese gold jewellery manufacturers are increasingly looking towards India and the Middle East for new business opportunities as the domestic market faces a period of adjustment driven by high gold prices and precious metal price volatility, according to the World Gold Council (WGC).

At the recent Jewellery & Gem WORLD Hong Kong fair, buyers from India and the Middle East accounted for a significant share of visitors, reflecting growing interest in Chinese jewellery manufacturing capabilities and new product development. Wang Lixin, China CEO, World Gold Council, said the interest was being supported by demand for innovative jewellery products and advances in Chinese manufacturing technologies.

One area attracting attention is hard pure gold, a product category that uses advanced crafting techniques to create jewellery that is thinner and harder without adding extra weight. The technology is enabling manufacturers to explore new designs while maintaining lightweight characteristics.

The growing interest from India and Middle Eastern markets is also being linked to demand for inlaid jewellery, an area where Chinese manufacturers see opportunities to apply their production expertise to local market preferences.

The nature of overseas demand is also changing. Chinese manufacturers were traditionally approached by buyers from these markets primarily for cost-effective production of existing designs. Increasingly, however, manufacturers are being encouraged to create greater value through design capabilities, craftsmanship and technology.

Chinese Jewellery Demand Falls Sharply

China’s domestic gold jewellery market has come under significant pressure.

According to data from the China Gold Association, gold jewellery consumption declined 34% year on year to 132 tonnes during the first half of the year. At the same time, demand for gold coins and bars for investment increased 28% year on year to 339 tonnes, highlighting a shift in consumer preference towards investment products amid elevated gold prices.

The market adjustment comes as consumers respond differently to record and elevated gold prices, with investment demand showing greater resilience than jewellery consumption.

India Gains Global Jewellery Market Share

The shift in China’s jewellery market comes as India strengthens its position in global gold jewellery consumption.

According to a World Gold Council report, India surpassed China in the second quarter to become the world’s largest gold jewellery market, accounting for 27% of global demand during the April-June quarter.

The development has increased the strategic importance of India for international jewellery manufacturers seeking new sources of demand.

The WGC has been facilitating greater connections between Chinese manufacturers and overseas buyers. The organisation arranged visits by major Middle Eastern wholesalers to Shenzhen, allowing them to inspect factories and showrooms, while also facilitating visits by leading Indian retailers to global jewellery exhibitions to explore potential collaborations.

Chinese Manufacturers Expand Overseas Client Base

Chinese jewellery manufacturers are already reporting stronger interest from international markets.

Yuehao Jewellery, a Shenzhen-based manufacturer with origins dating back to 1926, has seen an increase in clients from the Middle East and India, alongside growing interest from Japan and South Korea, according to Sharon Weng, Vice President of Branding and Products.

The company has also adapted its product development to specific overseas market preferences. For Japan, Yuehao introduced two collections featuring “black gold”, created through electroplating or oxidation techniques to give gold a dark appearance.

Technology and Design Become Key Growth Drivers

The changing market environment is pushing Chinese jewellery manufacturers to focus less on the cost of raw materials and more on manufacturing efficiency, craftsmanship, technology and design innovation.

The WGC’s Wang Lixin highlighted the significant improvement in China’s jewellery manufacturing and processing capabilities over the past five years, pointing to rapid developments in production technology and craftsmanship.

With domestic jewellery consumption under pressure, Chinese manufacturers are increasingly looking beyond their home market. India, the Middle East, Japan and South Korea are emerging as important markets where Chinese companies can leverage their evolving capabilities in design, technology and specialised jewellery manufacturing.

The shift signals a broader transformation in the international jewellery supply chain, where technology-led production, market-specific design and value-added manufacturing are becoming increasingly important for global expansion.