China's polished diamonds imports from Israel in the first four months this year reached 29.6 million US dollars, up 4.2 percent year-on-year, said a visiting Israel Diamond Institute delegation now in Shanghai, China's commercial hub.

"China has a huge potential to become one of the Israel diamond industry's major export markets in next five to ten years. We anticipate an era of enhanced business ties between Israeli and Chinese companies," said Shmuel Schnitzer, president of the Israel Diamond Exchange and also a member of the delegation, which comprise members from 22 Israeli diamond producers and exporters.

"I believe that by combining the inherent advantages of each side, we can achieve enormous mutual benefits," said Shmuel Schnitzer.

Israel is a world processing and trading center of polished diamonds which attracts half the world's total raw diamond.

Israel exported 5.532 billion US dollars of polished diamonds in 2003 and the amount is expected to hit 8 billion US dollars in 2004.