Shanxia Lake’s Huadong International Jewelry City: The Global Heart of Freshwater Pearls

Nestled in the scenic town of Shanxia Lake in Zhuji, Zhejiang Province, Huadong International Jewelry City has solidified its position as the world’s leading hub for freshwater pearls. As of 2024, this vast marketplace has become a global benchmark for pearl production, innovation, and digital transformation.

Spanning an impressive 160,000 square meters, the market is home to more than 2,400 retail and wholesale booths, offering everything from loose pearls to intricately crafted fine jewelry. This expansive complex functions not only as a marketplace but also as a comprehensive ecosystem supporting cultivation, processing, quality control, design, and global distribution.

In 2023, the city posted a record annual sales revenue exceeding 500 billion RMB, marking a substantial 25% year-on-year increase. Over 260 billion RMB of this came directly from online channels, highlighting the meteoric rise of livestream commerce. With more than 5,000 active livestreaming accounts, platforms such as Douyin (TikTok), Taobao Live, and TikTok Shop have become central to the city’s sales strategy. On any given day, over 150,000 packages are shipped from Shanxia Lake to domestic and international buyers.

This surge in digital engagement has attracted over 15,000 livestream hosts to the region in 2024 alone, transforming Shanxia Lake into a beacon for social commerce. Innovations such as “one product, one code” digital traceability and cloud-based quality monitoring are now standard practice. These tools ensure transparency and build trust throughout the supply chain.

Despite having a population of under 30,000, the pearl industry employs more than 28,000 people locally. This reflects the town’s deep integration with the pearl economy. More than 73% of the world’s freshwater pearls originate here, and products are now exported to over 60 countries. International exposure has been further boosted by the town’s participation in major trade events such as the Hong Kong International Jewellery Show.

Huadong International Jewelry City also emphasizes sustainable practices. In recent years, the town has halved its farming acreage from 8,000 to 4,200 mu in order to reduce environmental impact and improve water quality. This move reinforces its commitment to responsible aquaculture.

From a quiet farming town to a global pearl powerhouse, Shanxia Lake continues to shine as the definitive center of the freshwater pearl world. With its blend of tradition, innovation, and global connectivity, Huadong International Jewelry City is shaping not only the future of pearls but also the way the world shops for them.

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China Leads in Smart Eco-Restoration: Integrating Water Treatment, Sustainable Aquaculture, and Pearl Innovation

As China pushes forward with its dual goals of environmental sustainability and rural revitalization, Zhejiang Qinghu Holding Group Co., Ltd. (浙江清湖控股集团有限公司) has emerged as a national leader in ecological water treatment and innovative freshwater pearl farming. Founded in 2016 in Shanxiahu Town, Qinghu combines advanced aquaculture with environmental restoration in a way few enterprises have achieved.

A High-Tech Approach to Eco-Friendly Innovation

Recognized as a national high-tech enterprise, Qinghu has pioneered a suite of patented technologies under its “Intelligent Biological Chain Water Treatment” model. From Hangzhou’s West Xixing River to mariculture farms in Guangdong and crab ponds in Jiangsu, the company’s projects involve:

• Eco-friendly dredging
• In-river microbial purification
• Tailored deployment of fish, shrimp, shellfish, and algae
  • These natural systems break down pollutants and restore healthy aquatic ecosystems. Water clarity in some rivers has increased from less than 15 cm to over 50 cm, while nutrient loads like nitrogen and phosphorus have dramatically decreased. Treated water now meets or exceeds China’s V-class surface water standards, often qualifying for reuse in agriculture or aquaculture.

A Smarter Way to Farm Pearls

At its Shanxiahu base, Qinghu has implemented automated and precision pearl farming systems:

• A breeding automation system schedules and delivers feed to pearl mussels without manual labor.
• Precision feeding via networked pipes and digital controls targets each mussel individually, improving nutrient absorption, cutting costs, and enabling vertical farming.

This dual-use of aquaculture for both water purification and pearl production marks a unique advancement in the global pearl industry. The company is also building China’s largest Freshwater Pearl Color Gene Bank, aiming to improve natural pearl coloration and reduce reliance on post-harvest processing.

Linking Ecology, Economy, and Community

Qinghu’s projects go beyond technical achievement—they are integrated into local tourism, education, and research efforts. In Shandong, for example, a reclaimed mining collapse zone has been transformed into a national demonstration site combining water purification, sustainable aquaculture, and public engagement. In Hubei’s Chibi City, Qinghu’s partnership with China Resources is driving an innovative “PV + Ecology” model, using solar panels above aquaculture ponds to optimize land use and clean water resources simultaneously.

Shaping a Sustainable Future

“Zhejiang Qinghu Holding is not just cleaning rivers or farming pearls—we’re creating replicable models of how ecology and industry can thrive together,” said a company spokesperson. “We believe the future lies in smart, nature-based solutions that support both the environment and local communities.”

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AI Technology Revolutionizes Pearl Sorting in Shanxiahu (山下湖)

For the pearl producers of Zhuji, every challenge is simply a stepping stone to innovation. In the past, pearl classification was a painstaking manual process that was slow, labor-intensive, and often inconsistent. Results could vary significantly depending on the subjective judgment and experience of individual workers, leading to discrepancies in quality grading.

But at the 2024 Shanxiahu World Pearl Conference, a groundbreaking innovation was unveiled: an AI-powered pearl quality selection machine designed specifically for the needs of the Chinese pearl market.

This cutting-edge machine is capable of accurately sorting pearls based on multiple criteria including luster, roundness, size, and surface blemishes. With the ability to classify pearls into nine distinct grades, it delivers unmatched precision and consistency. The machine can process up to 432,000 pearls per day, significantly boosting productivity and allowing skilled workers to focus on more specialized and value-driven tasks within the production process.

“My experience with the machine has been nothing short of incredible,” he shared. “It’s extremely accurate and doesn’t suffer from eye strain like people do. Human classifiers get tired, but the machine maintains consistency from start to finish.”

By integrating artificial intelligence into the pearl sorting process, Shanxiahu is redefining industry standards. The adoption of this technology not only boosts efficiency but also elevates the accuracy of grading, opening up new possibilities for growth and quality control in China’s freshwater pearl industry.

As automation continues to transform traditional pearl farming, Shanxiahu is once again proving itself to be at the forefront of innovation—setting a powerful example for pearl producers around the world.

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Precision Drilling, Perfected by AI

Following the success of automated pearl sorting, developers in Shanxiahu took another bold step toward streamlining pearl production with the introduction of an AI-powered automatic drilling machine.

Equipped with robotic control arms, this advanced system can gently and accurately handle pearls ranging from as small as 2mm to as large as 15mm. Once pearls are pre-sorted by size, they are placed into trays and fed into the machine. From there, the AI takes over by picking each pearl with precision and drilling a full hole in seconds.

The consistency and accuracy of this system help reduce the risk of breakage or misalignment, ensuring cleaner and more reliable results. It is a major step forward in maintaining high quality standards while keeping up with growing demand.

That said, there are still some challenges. Pearls that are not perfectly round, such as baroque or semi-round varieties, can be more difficult for machines to align correctly. Additionally, the human technique of placing drill holes to discreetly hide surface blemishes remains tricky for automation to replicate.

However, these limitations may be resolved in future updates. With second or third-generation improvements, the technology is expected to handle these nuances with greater finesse.

By embracing innovation, the pearl industry continues to honor craftsmanship while enhancing precision through modern tools.

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“Zhu” Shines on the World: The 5th Shanxia Lake World Pearl Conference Opens

On May 20, the 5th Shanxia Lake World Pearl Conference (SWPC) opened in Zhuji, celebrating the theme “‘Zhu’ Shines on the World, a Brilliant Future.” This year’s event brought together leading figures in the pearl industry, global buyers, and policymakers to showcase innovation, globalization, and the continued rise of Zhuji as China’s “Pearl Capital.”

Shanxia Lake in Zhuji is now recognized as the largest pearl trade center globally, contributing 80% of China’s and 70% of the world’s pearl trade. With a comprehensive industrial chain—from farming and processing to design, sales, and derivative products—the regional pearl economy has exceeded 50 billion yuan in annual output.

A key highlight of this year’s event was the announcement of a major high-speed rail project that will include a stop in Shanxia Lake. Approved by the Zhejiang provincial government and set to begin construction in late 2025, this line will further integrate Zhuji into China’s national high-speed rail network. Government officials emphasized that the railway will boost the regional economy, support pearl industry logistics, and increase access to Shanxia Lake for tourists, business travelers, and international buyers. The project is expected to be completed by 2028 and is seen as a transformative infrastructure step for Zhuji’s long-term global competitiveness.

In parallel with infrastructure developments, Shanxia Lake is transitioning from a freshwater pearl hub to a “global pearl supermarket.” Over 500 cross-border e-commerce accounts have been established on platforms like Amazon, TikTok, and AliExpress, with exports exceeding 500 million yuan this year alone. To support this growth, the new Pearl Bonded Display and Trading Center has streamlined procurement and logistics, reducing customs clearance times by 60% and improving capital flow for SMEs by 55%.

The pearl industry is rapidly embracing technology. Automated machinery now handles sorting and drilling with high precision, reducing labor costs by 60%. Artificial intelligence is used to accelerate jewelry design and online marketing, tripling efficiency. Chip-based digital tracking has introduced end-to-end transparency, allowing consumers to verify origin and quality with a tap via NFC.

To ensure sustainability, Zhuji is promoting digitized and standardized farming, with environmental controls to prevent pollution and enhance pearl quality. Over 600 experts now work across five research hubs and two academician workstations in Shanxia Lake, focusing on breeding, eco-farming, design, and new product development. Thirteen national gem-testing labs issue more than 70,000 certification reports daily, reinforcing consumer confidence.

On the cultural and branding front, events like the Aurora International Jewelry Design Competition and university contests are redefining pearls as fashion-forward. Shanxia Lake’s “pearl + tourism” model, offering oyster-opening experiences and customizable jewelry, is drawing thousands of visitors each year. Village economies are thriving through tourism integration, creating jobs and increasing income.

With more than 7,000 company appearances at 52 major exhibitions globally, including in Tokyo and Hong Kong, Zhuji’s pearl industry has shifted from simple exports to full-spectrum cultural branding. Companies are now exploring NFTs and pearl-themed cultural products to align with international tastes and digital trends.

During the “5.20 Pearl Shopping Festival,” over 2,000 stores launched promotional campaigns with livestreaming and influencer collaborations across platforms like Douyin and Taobao. Sales rose 20% from the previous month, demonstrating the power of online-to-offline integration.

Huadong International Jewelry City has grown from 600 to over 2,000 merchants in five years, evolving into a regional destination with retail, R&D, and tourism offerings. New developments, including pearl-themed communities and immersive cultural routes, promise deeper engagement with both domestic and international audiences.

In closing remarks, Zhuji Party Secretary Jin Jinfu emphasized the city’s goal to build a 100-billion-yuan fashion industry and become a global hub for pearl innovation, design, and trade. The high-speed rail project, paired with digitization, international outreach, and sustainable growth, marks a new era for Zhuji—where tradition meets transformation, and pearls continue to shine brighter on the world stage.

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Guild “Aurora Brilliance” Awards Illuminate Global Pearl Trends at Shanxiahu

The Global Pearl Industry Outlook Forum and 4th Aurora Brilliance International Jewelry Awards (Shanxiahu Pearl Edition) were held on May 20 at the Shanxiahu Pearl Museum in Zhuji. The event was co-hosted by the Zhejiang Pearl Industry Association, GUILD Gem Laboratory, and GUILD Gem Education.

Industry leaders and global experts gathered to discuss innovations, challenges, and future directions for the global pearl industry. Key attendees included GUILD Lab President Ruby Liu, CPAA President Jeremy Shepherd, award-winning designer Paula Crevoshay, jewelry producer Martin Bell, TSVG founder Pierre Fallourd, and David Troth of David Harry Jewelry.

Global Panel Discussions Highlight Market Shifts and Innovation

The panel discussions offered insight into evolving consumer preferences, branding strategies, and global market dynamics:

• Jeremy Shepherd shared insights on the U.S. market’s pivot to e-commerce and livestream selling. He noted that while Akoya pearls are still perceived as the most luxurious, Chinese freshwater pearls are the most widely purchased due to their affordability, variety of natural colors, and thick nacre.
• David Troth emphasized growing Western demand for naturally colored pearls and praised Chinese freshwater pearls for their soft, natural pastels, which are increasingly embraced by designers and younger customers.
• Pierre Fallourd discussed the impressive technological progress in China’s pearl sector, including innovations in automated grading, sustainable farming, and packaging. He called for broader international recognition of China’s role as a driver of pearl market innovation.
• Martin Bell addressed design market trends, pointing to increasing consumer interest in full-nacre pearls and the storytelling potential of Chinese freshwater varieties. He emphasized the importance of design accessibility and ethical sourcing.
• Paula Crevoshay showcased her art jewelry creations and spoke on the role of pearls as a medium of self-expression and artistic storytelling in high-end jewelry design.

The panel also explored global trade pressures, and the rise of Southeast Asian markets like India and Indonesia. All panelists agreed that storytelling, transparency, origin disclosure, and sustainable practices are essential for future industry growth.

Aurora Brilliance Awards Ceremony

The forum concluded with the 4th Aurora Brilliance Awards, celebrating outstanding pearl jewelry designs. Over 6.8 million online votes were cast. With support from local government, livestream influencers, and media partners, the event is projected to reach over 40 million views across digital platforms.

Organizational Remarks

Vice Mayor Gao Song commended Zhuji’s position as a leader in the global pearl industry, producing 80 percent of China’s freshwater pearls.

Association President Chen Xiaying highlighted the region’s focus on sustainability, innovation, and international cooperation.

Ruby Liu, President of GUILD Lab, described the event as a valuable platform for global exchange and professional development, inspiring future generations in pearl design and trade.

This year’s forum and awards underscore Shanxiahu’s growing influence in shaping global pearl trends and reaffirm Zhuji’s role as a global pearl capital.

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Shaping the Future: Developments in Freshwater Bead Nucleation

Edison pearls are a breakthrough in Chinese freshwater pearl cultivation, developed in the early 2000s and commercialized around 2010. Unlike traditional freshwater pearls, they are bead-nucleated using both a shell bead and donor tissue, similar to saltwater pearls. This innovation was the result of a collaborative effort between state-supported aquaculture research institutes and leading private farms in Zhuji. The result is large, round pearls with high luster and vivid colors that have elevated the quality and reputation of Chinese freshwater pearls.

This young mussel, only 4 months old, is part of a new generation of hybrids being selectively bred for their ultra-white, high-luster nacre. Traditional freshwater pearl cultivation in China, particularly in Zhuji, Zhejiang, typically uses Hyriopsis cumingii (三角帆蚌) or Hyriopsis schlegelii (池蝶蚌) as the host mussel, with donor mantle tissue taken from mussels that have a pearly or iridescent inner shell. In recent years, farmers in Shanxiahu have successfully sorted and bred a consistent line of mussels with white inner shells to use as tissue donors. This shift may influence pearl color, luster, and even growth rates. The breeding program specifically targets the production of small to mid-size round freshwater pearls ranging from 2mm to 10mm. After mastering perfectly round shapes in smaller sizes by late 2023, the current focus has shifted to the 6 to 10mm range, combining precision cultivation with a naturally radiant base color for the next evolution of white freshwater pearls.

According to a pearl producer with hands-on farming experience, it takes about one month for spat to develop into a baby mussel, and approximately four months to reach the stage shown in the photo. Traditionally, nucleation was done once mussels reached over a year old, but farmers have found that the seven to eight-month window is actually the most energetic period for implantation. Using younger tissue from specially bred hybrids, such as those with ultra-white or deep purple nacre, has shown to produce superior results in both color and luster.

Left Image: The pearl farmer points out that this mussel is male. The hand is holding the gonadal region where sperm is produced.
Right Image: The material on the fingers is sperm. In about a month, it will become more viscous and translucent as it reaches full maturity.

The image provides a detailed look at the internal anatomy of a mussel, highlighting key areas relevant to pearl cultivation:

• Stomach Area (Red Circle):
  This region contains the mussel’s stomach, essential for digestion but not directly involved in pearl formation.
• Gut Area (Green Circle):
  Marked in green, this is part of the digestive tract, responsible for processing nutrients.
• First Graft Area (White Circle):
  The white-circled area is where the first graft procedure takes place. During this step, a small piece of donor mantle tissue is implanted to initiate the formation of non-nucleated pearls or to prepare the mussel for future bead nucleation.
• Second Graft Area for Baby Edison Bead Nucleated Pearls (Blue Circle):
  The blue circle shows where a second graft is performed for producing baby Edison pearls. Here, a bead nucleus and a piece of donor mantle tissue are implanted to stimulate the formation of bead-nucleated pearls.
• Mantle Tissue for Nucleation (Outlined by Black Lines):
  The area outlined in black indicates the mantle tissue, which is harvested and used for nucleation. However, the tissue from this particular mussel is considered too old for optimal pearl production. Farmers prefer using mantle tissue from younger mussels, typically 7–10 months old, as it yields better results for both first and second grafts.

Understanding these anatomical regions is crucial for effective pearl farming, as the success of both tissue and bead nucleation depends on the precise selection and use of mantle tissue and correct graft placement.

Long-Term Cultivation: The Key to Color Stability

Unlike standard freshwater pearls, Edison pearls are nucleated with a bead and often cultivated for up to 3 to 4 years in healthy mussels. This extended growing period allows for thicker nacre development and, importantly, more stable natural coloration. According to experienced farmers, pearls harvested too early—especially from younger mollusks—tend to display color instability, leading to premature fading, particularly in naturally vibrant hues like purple, lavender, pink, and metallic overtones.

Patience in cultivation is crucial. Pearls that remain in the mussel for longer periods not only acquire deeper, more vivid tones but also exhibit stronger nacre that resists damage during post-harvest processing.

Minimal Intervention: Preserving Natural Beauty

High-quality Edison pearls often need little more than a light rinse with clear water and a gentle polish. Because the nacre is already dense and lustrous from prolonged growth, there is no need for heat treatments or aggressive polishing compounds. In fact, many farmers and processors agree that less is more.

Heat-based luster enhancement techniques, such as Maeshori, or the application of optical brightening agents (OBAs), may temporarily boost visual appeal, but they risk compromising the long-term integrity of the nacre. This is particularly concerning for colored Edison pearls, where such treatments can strip or destabilize the delicate natural pigments layered in the nacre.