user1 
We had exhibited at HKTDC Hong Kong International Jewellery Show, held at Hong Kong Convention & Exhibition Centre for 5 days from 28/02/2019 to 04/03/2019．
The world has begun to change dramatically due to political issues between the US and China． It can be said that the era has reached a major turning point by the US-China trade friction． It is thought that the world economy in the future will be divided into two central force groups, a group led by the United States and a group led by China． Even in telecommunication network which play a central role in infrastructure-related matters, as China’s communication technology is a serious threat to security assurance, the US government put pressure on all allies in the world not to use Chinese-made communication devices to base station and systems, especially for the next generation standard 5G．
Even in the United States, strict restrictions have been issued to prohibit the procurement of products and parts from five high-tech companies in China． On the other hand, China also disrupted the business of US companies in China by sudden tax inspection, quality control and disapproving application matters． The US-China Trade War is not only an economy matter, but between the US GAFA (Google, Apple, Facebook, and Amazon) and China BAT (Baidou, Alibaba, Tencent), the high-tech war using the big data began． There is no reason to supply next generation AI and IT technology each other any longer and it is thought that the world will be divided by two separate high-tech technologies from both countries.
Other than this, the US-China confrontation is damaging the world． Due to additional tariffs and trade restrictions, each country’s exports and the economy are shrinking． If exports in each industry in various countries are weak, oversupply will occur and lead to deflationary pressure． If the economy in each world’s various industries becomes weak due to the US-China trade friction, and if it becomes a situation where only minimum inventory is desired in anticipation of a decline in demand, the countries all over the world shift to trade restrictions to protect their own industries, then it causes further downturn in exports and downside risk of economy． So far, each country produces and exports what they are good at, and imports what they are not, mutually benefiting from free trade, the world has achieved economic development and many emerging countries’ economies has made progress．
However, with the resurgence of nationalism in recent years, the protectionism is spreading, and it is heading to deflation by closed trade restrictions．In addition, the US nationalism has plunged currencies of emerging countries, which are in a bad relationship to the US against dollar, and if the US raises the interest rate in the future, funds will flow into the US, leading to further decline in currencies and rising emerging country risks．
In addition, the US nationalism has plunged currencies of emerging countries which are in a bad relationship to the US against dollar, and if the US raises the interest rate in the future, funds will flow into the US, bring to further decline in currencies, and it causes emerging countries’ risks. The performance of major companies around the world began to be overshadowed, and the situation has been headed for deflation. This deflationary trend also applies to our industry, the prices for rare and valuable commodities remain high, but many other common items have fallen．Until now, it has been said that auction and secondary distribution products are cheap． But due to poor sales worldwide, the market prices of manufacturing and import / export in countries around the world might fall．Then it causes the possibility of falling value of auction and secondary distribution products, also． If so, it would increase deflationary pressure to lower the auction and secondary market prices one more step further． In the situation where the commodity is handled at the bullish market, we could cover some mistakes, but in the bearish market, it is likely that a few mistakes will be fatal, and to become difficult to determine the direction of company．
Amid the global economic downturn, the first jewelry show of this year in Hong Kong had started． But before this jewelry show, it seemed to have low expectations, due to the recent business conditions and tighter restrictions on remittance from China and on bringing goods into China．
However, I thought this jewelry show had been unexpectedly crowded with many visitors. There were many visitors from the first day, especially at the booths of popular Japanese companies. Reflecting the current situation in China, sales of high-priced products were sluggish, but low-and mid-priced products had been strong in demand like before．
Even diamonds had been disturbed by the problem of lab-grown diamonds, but the commercial transactions seemed strong．This jewelry show had a decent atmosphere, but I felt a little change. Despite the number of visitors was quite large, existing customers was sharply reduced, and it seemed that there were more new buyers at our booth．
As the style of sales changed in accordance with the change in situation, it seemed like only the people who were successful right now had been visiting the fair. Due to the “China E-Commerce Act” which requires companies in e-commerce (EC) to register with the government and pay taxes in China had been imposed, even the numbers of those who used smartphones and sold through SNS at the venue until recently reduced dramatically at this fair． Environmental changes are fast, and I felt strongly that the market has been influenced heavily by politics and the economy at this fair．
I could say that the first jewelry show of this year in Hong Kong seemed to indicate the future trend． The style of our industry is beginning to change now. I could feel a new trend from many new buyers who visited our booth. We also felt that further changes are urgently needed at our company. We had a pleasant business meeting with everyone who came this time, and are really thankful to you about we could complete this show with a lot of success. We would like to give our sincere gratitude, and are looking forward to seeing you again at the upcoming jewelry show．
