China’s Synthetic Diamond Exports Surge 65% Globally

China’s synthetic diamond industry is experiencing explosive growth, with exports declared through the Shanghai Diamond Exchange reaching 1.41 billion yuan (approximately $200 million) in the first half of 2026 — a year-on-year increase of 65.3%, according to Xinhua News. The surge underscores China’s emergence as the dominant force in the global lab-grown diamond market, now accounting for over 60% of worldwide production.

A Rising Force in Global Diamond Trade

The Shanghai Diamond Exchange, established in 2000 as China’s only diamond import/export trading platform, has witnessed a remarkable transformation over the past five years. Once focused primarily on importing natural diamonds, the exchange has become a major hub for synthetic diamond exports, with more than one-tenth of its 400-plus members now engaged in synthetic diamond production and export.

“In the past, the Shanghai Diamond Exchange mainly imported natural diamonds,” said Lin Qiang, president of the exchange. “Over the past 5 years, China’s synthetic diamond exports have emerged as a rising force, accounting for over 60% of global synthetic diamond production. With both imports and exports advancing, Shanghai is building a ‘harmonious but distinct’ development stage for international trade in both natural and synthetic diamonds.”

The exchange’s dual role reflects China’s strategic positioning in the global diamond trade. Since 2025, natural diamond imports have shown signs of stabilization and growth, while synthetic diamond exports continue to expand rapidly — establishing China as both a major diamond consumption market and an important production source.

From Jewelry to High-Tech Applications

While synthetic diamonds have traditionally been associated with jewelry, the industry’s second growth curve lies in advanced technology applications. Chen Wang, sales director of Ningbo Jingzuan Technology Co., a leading CVD synthetic diamond manufacturer, highlighted the material’s potential in integrated circuits, AI computing power, high-power lasers, high-frequency filters, and quantum technology.

“Synthetic diamond’s heat dissipation performance is several times better than copper,” Chen explained. “For chips and phone chargers, it can significantly reduce hotspot temperatures, dramatically improving chip performance and charging efficiency.”

This technology-driven trajectory is reshaping the industry. According to TMTPost, 2026 is considered the first year of diamond heat dissipation industrialization, with the global market expected to exceed $1.2 billion — growing over 200% year-on-year. Diamond’s thermal conductivity is five times that of copper and nearly fifteen times that of silicon, making it an ideal material for next-generation AI chip cooling.

Key developments include Nvidia’s announcement that its next-generation Vera Rubin architecture GPUs will fully adopt “diamond-copper composite material + liquid cooling” solutions, and the delivery of the world’s first H200 server with diamond cooling technology for commercial use in February 2026. As Gelonghui reports, Chinese companies including Huanghe Xuanfeng, Liliang Diamond, Huifeng Diamond, and Sifangda are making significant investments in diamond heat sink production.

Henan: The World’s Diamond Factory

China’s synthetic diamond industry has deep roots in Henan Province, which accounts for over 80% of the country’s lab-grown diamond production capacity. The province produces nearly 25 million carats annually, with Zhecheng County serving as the world’s densest synthetic diamond industrial cluster. Globally, seven out of every ten lab-grown diamonds come from Henan.

The industry’s evolution spans six decades, from China’s first synthetic diamond developed in 1963 by the Zhengzhou Abrasives and Grinding Research Institute to the establishment of the “Zheng-Nan-Shang-Xu Superhard Materials Cluster” as a national advanced manufacturing cluster in 2024. As Dahe Cube reported, the 2025 Lab-Grown Diamond Industry Conference in Zhengzhou highlighted the industry’s transformation from a manufacturing powerhouse to a global brand contender.

Market Disruption and Global Impact

The rise of China’s synthetic diamond industry is fundamentally reshaping the global diamond market. Global rough diamond production fell below 100 million carats for the first time in decades in 2025, declining 8% year-on-year to 98.8 million carats, according to Kimberley Process data cited by The Diamond Press. Traditional producers like De Beers are facing significant challenges, with the company reporting its fourth consecutive half-year deficit and considering selling its 85% stake at a fraction of its former worth.

Meanwhile, lab-grown diamonds have disrupted pricing dynamics. Prices for 1-carat high-quality lab-grown diamonds fell from approximately 8,000 yuan in 2020 to around 3,500 yuan, making them increasingly accessible to mainstream consumers. In European and American markets, synthetic diamond jewelry has moved beyond bridal wear into everyday and gift consumption.

Policy Environment and Export Controls

The industry operates within a carefully managed policy framework. In October 2025, China’s Ministry of Commerce and General Administration of Customs issued Announcement No. 55, imposing export controls on superhard materials including synthetic diamonds. However, as JRJ.com reported, these controls were suspended from November 2025 to November 10, 2026, allowing the industry to continue exporting freely during this period.

Chen Wang acknowledged the regulatory context: “Our current exports are mainly synthetic diamonds for jewelry use. In the future, we will comply with national export control regulations and further expand overseas markets by leveraging more technology-driven application scenarios.”

The policy environment has been broadly supportive. The Ministry of Science and Technology listed “superhard materials preparation technology” in national key R&D programs in 2023, and Henan and Hunan provinces have issued special policies to support lab-grown diamond industry cluster development.

Facilitating Global Trade

Shanghai Customs has played a crucial role in supporting the industry’s export growth. Cai Xinyan, head of the Customs Comprehensive Business Section at the Shanghai Diamond Exchange, explained that customs has established dedicated service windows and implemented efficient operating models including appointment-based clearance, on-arrival inspection, and immediate release after inspection.

“We have worked with professional institutions to build an integrated regulatory service platform and compiled compliance guidelines to help Chinese synthetic diamonds bring ‘creative beauty’ to the world,” Cai said.

Looking Ahead

As China’s synthetic diamond industry continues its rapid expansion, several questions loom. What will happen when the export control suspension expires in November 2026? Will the industry successfully transition from jewelry-focused exports to high-tech applications like AI chip heat dissipation? And how will the ongoing transformation of the global diamond industry reshape the market landscape?

What is clear is that China has firmly established itself as the world’s leading synthetic diamond producer. With its dual role in both natural diamond imports and synthetic diamond exports, the Shanghai Diamond Exchange is positioned at the center of a rapidly evolving global trade. As Lin Qiang put it, Shanghai is building a “harmonious but distinct” development stage for the international trade in both natural and synthetic diamonds — a vision that reflects the industry’s broader trajectory toward technological innovation and global integration.