Introduction
China is the world’s production engine for lab-grown diamonds. Most stones start life in Henan (HPHT powerhouses), with Guangdong/Shenzhen polishing and jewelry assembly buzzing downstream, and Jiangsu/Guangxi/Shandong adding tech-driven CVD capacity and materials know-how. Much of the rough heads to India for cutting—then on to U.S./EU retailers. Prices have fallen fast as Chinese output scaled, reshaping the global market.
Why China Matters?
Scale: China accounts for the majority of global lab-grown output—roughly three quarters in recent years—making it the supply center of the category. That scale is why prices keep getting friendlier for consumers and why the whole diamond market structure is changing.
Method mix: China’s edge is HPHT (high-pressure, high-temperature) for fast, cost-efficient growth; CVD (chemical vapor deposition) is rising for larger, ultra-clean stones.
Trade routes: A typical journey: China (rough) → India (cut/polish) → U.S./EU (retail)—with Hong Kong or Dubai as waypoints.
Image: Global trade flow of lab-grown diamonds: most rough stones are grown in China, polished in India, and sold in U.S./EU markets—with Hong Kong and Dubai acting as waypoints.
China Government Policy and Regulatory Environment
China’s lab-grown diamond boom is not only market-driven—it’s also shaped by government support.
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Strategic Industry: Lab-grown diamonds are classified as part of China’s “new materials” sector, linking them to high-tech uses like semiconductors and quantum tech. This status brings tax breaks and R&D grants.
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Local Support: Provinces like Henan treat the sector as a pillar industry. Zhecheng calls itself the “Diamond Capital,” offering industrial parks, subsidies, and talent programs to manufacturers.
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Market Stabilization: In 2023, Henan authorities backed an industry floor price of $15/ct to curb destructive price wars, echoing measures in solar and EV sectors.
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Trade & Tech Control: Diamond exports are free, but advanced HPHT presses are restricted as dual-use tech, keeping China’s production edge.
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Transparency & ESG: Regulators require clear labeling of lab-grown stones, aligning with global consumer laws. Factories are also pushed to adopt energy-efficient, greener power in line with China’s carbon-neutrality goals.
In short: The government acts as an architect and referee—supporting growth, stabilizing markets, and steering the industry toward high-tech and sustainable futures.
Image: China’s five policy pillars supporting the lab-grown diamond industry: strategic recognition, local subsidies, market stabilization, trade & tech control, and ESG alignment.
Where the diamonds are (and what each place does)
Think of China’s lab-grown scene as a few distinct “zones,” each with a superpower:
Henan (the heart):
What it’s known for: World-class HPHT cluster and the lion’s share of China’s output—industry accounts often peg Henan at ~80% of China’s lab-grown production.
Why it matters: Decades of super-hard-materials know-how (industrial diamond) evolved into gem-grade HPHT at huge scale. Zhecheng County is frequently dubbed the “diamond capital” for a reason.
Who’s there: Zhongnan Diamond, Huanghe Whirlwind, Sino-Crystal, Liliang Diamond and many more in a dense supplier ecosystem (presses, catalyst powders, seeds, maintenance, technicians).
Image: Monument in Zhecheng, Henan—widely known as China’s ‘Diamond Capital,’ where over 80% of the country’s lab-grown diamonds are produced.
Guangxi (the CVD specialist):
What it’s known for: Emerging CVD capacity aimed at high-purity, larger stones; a differentiated path vs. Henan’s HPHT bulk muscle.
Why it matters: Complements HPHT with gem-clean Type IIa material and larger sizes; helps China climb the quality ladder.
Image: Inside Wuzhou Gemstone Market in Guangxi, one of China’s largest trading hubs for colored gems and increasingly for lab-grown diamonds as well.
Guangdong / Shenzhen (the finisher):
What it’s known for: Polishing, jewelry design & manufacturing, quick commercialization.
Why it matters: This is where rough becomes retail-ready—especially set jewelry that flies out to overseas buyers.
Shenzhen Shuibei Gold Market: Known as one of the busiest and most vibrant jewelry trading hubs in China, Shenzhen’s Shuibei Gold Market is a key center for polishing, setting, and distributing lab-grown diamonds. It serves as a crucial link in the supply chain, connecting manufacturers with global buyers and supporting the rapid commercialization of lab-grown diamond jewelry.
Image: Entrance to Shenzhen’s Shuibei Jewelry Exchange, one of China’s busiest trading hubs where lab-grown diamonds are polished, set, and shipped to global markets.
How they’re made
HPHT = Henan: speed & scale. Multiple crystals grown per run in massive presses; great for volume and value. Modern HPHT in China includes improvements that lift color and clarity after growth.
CVD = Guangxi: purity & size. Layer-by-layer growth in plasma chambers, ideal for very high clarity/color stones and specialty applications; pace is slower but quality can be exquisite.
Result: China leads on HPHT at scale while CVD is catching up, especially in newer facilities.
Where they go
The route: Much Chinese rough moves to India (Surat/Mumbai) for cutting and grading, then to U.S./EU retail—so a ring sold in New York may have started its life in a Henan press before being polished in India.
Prices: As Chinese capacity surged, wholesale prices dropped sharply across sizes and qualities. That’s great for consumers and disruptive for mined-diamond pricing.
Who’s who
Zhongnan Diamond (Norinco group): With enormous HPHT capacity, Zhongnan Diamond is a powerhouse in Henan’s lab-grown diamond scene. The company not only focuses on mass production of high-quality gem-grade diamonds but also pioneers vertical integration, experimenting with jewelry branding and moving beyond just manufacturing. Their advanced presses and proprietary technologies help maintain China’s edge in volume and quality.
Huanghe Whirlwind: A giant in super-hard materials, Huanghe Whirlwind leverages decades of expertise in industrial diamonds to produce gem-quality HPHT stones. They have expanded their portfolio to include high-tech applications beyond jewelry, such as industrial cutting tools and thermal management components, showcasing versatility and innovation.
Zhengzhou Sino-Crystal: Known for its strong R&D focus, Sino-Crystal combines HPHT production with cutting-edge CVD research and development. As one of the first publicly listed companies in this sector, they invest heavily in improving diamond purity and size, aiming to push China’s lab-grown diamonds into premium markets globally.
Liliang Diamond: Specializing in gem-quality HPHT diamonds, Liliang Diamond has achieved notable success in growing large single crystals, a challenging feat that enhances the availability of bigger, high-quality stones. Their focus on quality and scale helps solidify Henan’s reputation as the “diamond capital” and supports China’s leadership in the global lab-grown diamond industry.
Together, these Henan-centered players anchor China’s output advantage.
Fun facts to drop at dinner
“Farmed” diamonds, literally: In Henan, engineers joke they “grow” diamonds—seed plus carbon “nutrients,” then crank up pressure/heat; harvest in days. Agriculture…but for gemstones.
From sanders to sparklers: Before gem-grade exploded, China dominated industrial diamond powders that polish glass, chips, even your watch crystal. The same ecosystem now feeds jewelry-grade growth.
Origin gets hidden: Most diamonds are labeled by polishing country, not growth origin—so a “made in India” lab-grown stone may have been grown in China first.
ART JAD: Connecting Global Buyers to China’s Lab-Grown Diamond Hubs
While this blog has mapped China’s lab-grown diamond clusters—from Henan’s HPHT powerhouses to Guangdong’s polishing workshops—the reality for Global buyers is that navigating this ecosystem can be overwhelming. Dozens of producers, different grades of quality, and fast-changing price dynamics make sourcing complex.
This is where ART JAD comes in.
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Wholesale focus: ART JAD is built as a bridge for international jewelers, designers, and retailers to access China’s lab-grown diamonds in a transparent, reliable way.
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Curated suppliers: ART JAD works directly with manufacturers in Henan, Jiangsu, and Guangdong, focusing on certified stones and export-ready partners.
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Knowledge hub: Beyond transactions, ART JAD offers educational resources—like this industry map—to help Global buyers understand where their stones come from and how the supply chain works.
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Trust & transparency: By combining on-the-ground relationships with global customer service standards, ART JAD simplifies what is otherwise a fragmented landscape.
Fun fact: Many of the diamonds that pass through India’s cutting centers started in ART JAD’s partner factories in Henan!
What a Global buyer/brand should take away
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China = reliability at scale. If you need consistent supply—from melee to multi-carat—China’s HPHT base delivers. CVD capacity is the fast-riser for ultra-clean stones.
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Expect value. High output means better prices, and that dynamic is unlikely to reverse soon. Build pricing models that assume continued competition.
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Mind the chain. Sourcing often spans China → India → U.S./EU. Clarify with suppliers whether you want rough, polished, or set jewelry, and how origin is disclosed.
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Beyond jewelry. Watch China’s CVD push into thermal management and semiconductor uses; the same factories may soon supply diamond “chips” as well as rings.
Future Outlook: Beyond Jewelry
For most readers, the story of lab-grown diamonds begins and ends with jewelry. Engagement rings, earrings, necklaces—these are the products filling store windows from New York to Paris. But China’s diamond industry, supported by its scale and government recognition as a “new materials” sector, is increasingly looking far beyond jewelry.
1. High-Tech Applications
Diamonds are more than sparkle. They are also one of the most remarkable materials on earth: harder than any natural substance, excellent at conducting heat, transparent to a wide range of light wavelengths, and chemically stable. These properties make synthetic diamonds a natural fit for cutting-edge industries.
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In semiconductors, lab-grown diamond wafers are being developed as heat spreaders for gallium nitride (GaN) chips, improving the performance of 5G base stations and electric vehicles.
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In quantum computing, diamond defects known as NV (nitrogen-vacancy) centers can serve as quantum bits, a promising platform for sensors and information processing.
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In medical technology, diamond coatings are being tested in surgical tools and implants, while in optics and lasers, diamond windows withstand extreme power without degradation.
China’s ability to mass-produce diamonds at low cost positions it not just as the world’s jeweler, but potentially as the materials backbone of next-generation technology.
2. China’s Strategic Role
As discussed earlier, Chinese companies already account for nearly three-quarters of global lab-grown diamond output. Looking ahead, their challenge is to move up the value chain:
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From bulk HPHT production to high-purity CVD for electronics.
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From anonymous suppliers to branded partners in global markets.
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From focusing purely on gem demand cycles to supplying industrial and tech innovators.
Government policy is aligned with this shift. By treating diamonds as “superhard materials,” Beijing signals that the industry’s future is not just decoration, but deep technology.
3. Global Competition and Collaboration
The next decade will likely see a more defined division of labor:
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China as the production powerhouse and technology scale leader.
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India as the global cutting and polishing hub.
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The U.S. and Europe as centers for branding, marketing, and specialized CVD innovation.
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The Middle East as a rising source of investment capital for diamond ventures.
Rather than competing in isolation, these hubs may end up collaborating across the value chain. For example, a diamond grown in Henan, cut in Surat, certified in Antwerp, and marketed by a U.S. brand could also one day serve inside a Tesla power module or a quantum sensor.
In short: The future of China’s lab-grown diamond industry lies in expansion beyond jewelry. From dazzling rings to invisible chips, the “diamond capital of the world” could just as easily become the “diamond laboratory of the future.”
Image: Global lab-grown diamond landscape: China leads in production scale, India in polishing, the U.S. and Europe in branding and CVD innovation, and the Middle East in capital investment.
This article is authored by Junxian Zhu. Connect with me on LinkedIn. https://www.linkedin.com/in/junxian-zhu-jewelry/