Hong Kong Trade Development Council Deputy Executive Director Dennis Yau said the economic situation in Hong Kong, like in most Asian countries, is improving. The growth will be even more significant if China joins the World Trade Organization. If it does, China's trade should double in five years' time, and that would affect the whole market. In this case Hong Kong producers will be able to export goods from its distribution centers in China to overseas markets.

He also mentioned that another important factor in the development of the Hong Kong jewelry industry is electronic commerce. To help companies compete, the Hong Kong Trade Development Council recently launched a new Web site tdctrade.com, an Internet portal for anyone wishing to trade via the Internet.

According to the Trade Development Council, total worldwide exports of jewelry and precious metals from Hong Kong were $1.2 billion U.S. in 1999, a 24% increase from 1998, with the United States, Japan, Switzerland and Germany serving as its top four markets.

Demand for Hong Kong jewelry rose throughout much of Europe with imports increasing 27% to $247 million U.S. in 1999 over the previous year. That growth is illustrated by the size of the Hong Kong Pavilion at the Basel Show this year, which features 300 exhibitors, an increase from last year's 245.

In 1999 watch export to the USA totaled $5.4 billion. Bob Chong, chairman of the Watch & Clock Advisory Committee of the trade council, cited several trends: Simple designs are hits in the United States. Timepieces with features such as tone dialers, pagers or incoming call alerts for mobile phone are gaining popularity. In demand are casual watches with electronic functions such as time or temperature voice announcements and watches used as fashion apparel.

In Europe, the demand for stainless steel watches without electroplating is rising, partly due to environmental concerns and restrictions on nickel use.