China, though, is nibbling away at the diamond processing pie that India controls, with increasing numbers of diamond processors from Israel and Belgium, and even India, setting up bases in China, for a variety of reasons:
The labor force is cheap and disciplined.
China's economic growth is continuing, and the number of wealthier consumers within the country rising, while India has to rely almost solely on exports.
De Beers, the world's largest supplier of rough diamonds, is increasingly favoring China in order to reduce its dependence on India.
The quality of Chinese workmanship is steadily improving.
Policies such as single window clearance largely favor foreign businessmen.
