Chinese Traders Scooping Up Mandalay Gems, Precious Stones

Chinese traders have managed to dominate the precious gems and jade market in Mandalay, paying jade prices as much as 50 percent under the stone’s value, say jade traders in Mandalay.

“The Chinese buyers totally control the gems market, especially the jade trading, where prices have fallen more than 50 percent,” a jade trader in Mandalay told The Irrawaddy on Tuesday.

A worker grinds a piece of jade. (Photo: Robin Thom)

The buying and selling of gems, especially jade, came to a near halt in the past few months, exacerbated by Chinese buyers exporting gems and stones illegally, according to Mandalay gem traders.

Myo Thu, who mostly deals in private jade sales and monitors the jade trade in Mandalay, estimated that jade sales have dropped more than 65 percent.

“The jade market is quiet, even through Chinese buyers come to the market. But they give no more than what traders paid for the stone,” he said.

The Mandalay gem market includes jade, rubies, sapphires and other precious stones that come from six areas of Burma: Mogok in Mandalay Division; Mongshu in Shan State; Khamti in Sagaing Division; and Moe-Nyin, Hpakant and Namya in Kachin State.

“Most of the jade, rubies, sapphires and other precious stones in the Mandalay gem market are purchased by Chinese buyers who are making gem products, ” a jade trader said.

A jade market in Mandalay (Photo: Robin Thom)

“Some precious stones are illegally bought by the Chinese dealers and sent directly to Hong Kong and Macau,” he said.

The Mandalay gem and precious stone industry employs an estimated 100,000 people around Mandalay.

A gems trader from Mae Sot, Thailand, said that the precious gems market at the Thai border was also quiet, and there were few buyers at the three-day Tak Province Chamber of Commerce-sponsored gem show which ended on Sunday.
 
“Gem buyers didn’t come, even visitors didn’t come,” he said.

In July, former US President George Bush signed into law the Burma Jade Act, restricting the import of precious Burmese gems and stones and extended existing import sanctions on Burma. Ten Burmese companies were added to the sanction’s list.

The US sanctions targeted two conglomerates, the Union of Myanmar Economic Holdings Limited (UMEH), and the Myanmar Economic Corporation, established by the Burmese military, which is engaged in commercial enterprises and industries, including the gem, banking and construction industries.

UMEH subsidiary companies include Myanmar Ruby Enterprise and Myanmar Imperial Jade Company Ltd.

Also on the sanction list are No 1 Mining Enterprise, No 2 Mining Enterprise and No 3 Mining Enterprise, all owned by the Burmese Ministry of Mines.