China is the main producer of pearls with over 95 per cent pearls and 99 per cent freshwater pearls in the world are produced there. But the annual turnover of pearl production is only 8 per cent of the world's gross revenue. The main reason is because China has not made ground on building brand image for a long historical period. Western countries buy pearls from China mostly because they are cheap.

A hyper-competitive environment makes it not enough to only depend on a low pricing strategy. Some Chinese major pearl cultivating companies decide to cooperate on working out a new brand and quality strategy. The Chinese government also decided to appropriate a huge amount of funds on promoting China Pearl.

Seven Chinese pearl cultivating companies invested up to three billion Yuan (US$375million) to build a pearl trade center in eastern China, called China Pearl & Jewelry International City. The whole center occupies 350,000 square meters. There will be 2000 stalls, which is three times more than currently existing 600 stalls. It is expected to open in November 2007.

The China Pearl & Jewelry International City is mainly for pearl trading. Some related industries are also covered, such as jewelry parts, pearl jewelry package design, as well as loose pearl process, pearl production and technique research, pearl quality appraisal, and pearl cultivation research institutions.

In pearl cultivating farms, advanced technique and quality assurance are emphasized as core factors. Until now, some high quality ocean pearls and freshwater pearls with nucleus are successfully produced. Thirty institutes allied together to open a new pearl cultivation school. One hundred professors are put on position to provide intellectual resource. All pearl cultivating workers must be provided the professional training course before they start working.

The main competitor of China pearl industry is Japan. Because of the red tide and environmental effect in recent years, the pearl production from oceans in Japan has been nearly frozen. It is a good opportunity for China. China is already determined that its goal to become the new pearl center in the world will be reached.