Friday, 31 March 2017

CHINA; Ivory Smugglers And Traders In Trouble, China Shuts Lucrative Ivory Shops And Factories

China is closing down a third of its ivory retailers and factories on Friday before a formal ban on its ivory trade by the end of 2017.

In total, 67 carving factories and shops will be shut on Friday, with the remaining 105 to close by the end of the year, according to China's Forestry Administration.

Officials from the UN Convention on International Trade in Endangered Species will be present to witness the shutdown.

China is the world's largest importer and user of elephant ivory tusks and the move has sparked delight among activists and conservationists.

Yet Hong Kong, a special administrative region of China, has not yet followed suit despite outlining a plan last year to ban ivory trading within five years.

The price of ivory in China has dropped by almost two thirds since the country revealed plans to end the legal trade later in the year.

In early 2014, tusks cost on average £1,700 per kilogram, but by February 2017 this had dropped to less than £600.

Experts have claimed Chinese demand for tusks - at one point accounting for 70% of global demand - has driven African elephants towards extinction.

Experts estimate up to 30,000 elephants are killed by poachers each year to meet demand for ivory.

Liu Fenghai has made his fortune in the ivory trade. There was a time when he had 25 craftsmen working exclusively on elephant ivory at his factory in the northern city of Harbin.

He would buy the raw ivory and then have it turned into the pendants, paperweights and statues that once filled shelf after shelf in his shop, as well as the much larger, elaborately carved whole tusks proudly displayed on plinths of their own.

At the height of the market some of them could sell for many thousands of dollars.

Now, to the delight of conservationists everywhere, China is calling a halt to this lucrative end of a brutal and bloody trade.
But Mr Liu, as you might expect, is far from happy. "I feel sad," the 48-year-old said. "I don't feel good at all. This tradition has been carried on for thousands of years but now it will die in the hands of our generation."
"I feel like a sinner," he added. "In a few hundred years time, we will be seen as the sinners of history."

In fact, although ivory carving can indeed be traced back centuries in China, for much of that time it existed only as a niche art form and the Chinese made barely a dent in the global ivory trade.

Throughout the 19th and 20th Centuries, the mass slaughter of elephants was carried out at the hands of the European colonial powers and then later North American entrepreneurs.

Western demand for ivory ornaments, jewellery, piano keys and billiard balls helped reduce the African elephant population from more than 20 million in the year 1800 to just two million by 1960.

Then came Japan's post-war economic rise and the slaughter was propelled through the 1970s and '80s, by which time the elephant was teetering on the brink of extinction.

It was only with the international ban on the trading of elephant ivory in 1989 that the species was given a brief respite.

Once again though, it was another major shift in the global financial order that signalled further disaster - China's emergence as a major economic power.

An explosion of wealth coupled with the Communist Party's unique blend of corruption and crony capitalism made ivory the perfect repository of value, both for ostentatious displays of success and discrete gift giving.

An art form became an industry and in a few short years China began to account for up to 70% of the global demand for ivory.

Today, as a result of the surge in poaching, the elephant is once again facing complete annihilation, with estimates suggesting there are fewer than half a million left in Africa.

There may be no more wild populations within a decade.

If Mr Liu believes it is a sin to lose an ancient art, how much more of a sin to lose an ancient species in the name of the mass-produced - often machine-carved - ivory tat that makes up the bulk of the products on sale in China today?

Not a moment too soon, the Chinese government has decided which side of history it wants to be on.

This week, by the end of business hours on Friday, almost half of China's authorised, government-approved ivory factories and shops will have closed their doors for good.

A team of officials from the UN Convention on International Trade in Endangered Species (Cites) will be on hand to witness the shutdown.

The rest of China's legal trade will be gone by the end of the year - a total of 34 factories and 138 shops.

It is a deeply symbolic moment, a "game changer" according to campaigners, with one of the most high profile and vocal, the UK's Prince William, publically applauding the Chinese government's decision as "an important commitment".

No small irony, perhaps, given the role the prince's own ancestors played in promoting the trade, with more than 1,000 ivory items still held in the royal collection.

But closing China's carving workshops and retail outlets is so important, it is argued, not only for its own sake, but because this legal business acts as cover for a much bigger black market trade.

In 2008 China was allowed, under the Cites system, to buy a 62-tonne stockpile of seized African ivory.

The theory was that, with careful monitoring and a system of certificates, the stockpile would provide a controlled supply to China's factories and therefore dampen demand for illegal ivory by helping to keep prices low.

It has had the opposite effect. It appears to have in fact stimulated demand by giving consumers the green light that ivory was ok to buy. Coupled with poor enforcement, corruption and fraudulent certifications a huge amount of illegal, newly poached ivory flooded into China and on to the market, some of it under the guise of Cites authorised stock.

Demand rose further and prices, rather than going down, skyrocketed. Research suggests that the illegal stockpile of ivory in China today may stand at 1,000 tonnes or more, far in excess of that supposedly well regulated and controlled quantity purchased back in 2008.

Now, although there are undoubtedly other factors at play - not least the slowing Chinese economy and the crackdown on official graft and gift giving - the announcement of the ban on the legal trade does appear to be helping to bring the speculative frenzy to an end.

Consumers and dealers have been sent a strong signal that the game is up and prices of ivory have recently been dropping, from more than $2,000 (£1,611) per kg in 2014 to around $700 per kilo today.

Big questions remain, however. As in other markets, like the UK, the Chinese announcement appears to allow for the continued trading of antiques, which campaigners fear may act as a loophole.

Meanwhile, the government has not said what it will do with the remaining stockpile of legal ivory and how it will prevent it from leaking on to the black market.

And while the new policy may well drive the illegal trade further underground, controlling it will still depend on the resources given to law enforcement agencies.

Our own research suggests a less than wholehearted willingness to tackle wildlife crime.

For more than two decades, trade in rhino horn has been completely prohibited in China. Selling, purchasing, transporting or mailing it has been punishable by harsh sentences, including life imprisonment for the worst offenders.

And yet, via a quick search on the internet, traders can be found openly offering rhino horn for sale as whole pieces, as jewellery or for use in Chinese medicine.

The risk attached to both buying and selling appears to be small.

"Trust me, I've never had any problems before," one of the online vendors said, after sending us pictures of rhino horn bracelets.