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China trade
EconomyChina Economy
China’s lab-grown diamonds get an AI boost as industry rides demand for chip cooling
Exports surge in first half of year, as the superior heat dissipation of diamonds expands market beyond jewellery, positioning China for further growth
2-MIN READ2-MIN
Emma Main Shanghai
Published: 7:30pm, 7 Aug 2026
Once overshadowed by natural diamonds in consumer markets, lab-grown versions of the world’s strongest natural substance have become a bright spot for industrial applications, fuelled by the global artificial intelligence (AI) boom
As the world’s largest producer of the synthetic gems, China has posted strong export growth in recent years. Official data shows that the value of exports of lab-grown diamonds through the Shanghai Diamond Exchange (SDE) hit 1.41 billion yuan (US$210 million) in the January-June period, up 65.3 per cent from a year earlier
“In the past, SDE-channelled trades were dominated by natural-diamond imports,” Lin Qiang, president of the SDE, told the South China Morning Post. “But over the past five years, China’s lab-grown diamond industry has emerged as a major powerhouse. More than 60 per cent of man-made gems are produced in China, propelling export growth.”
In terms of jewellery consumption, the US remains the largest market, accounting for more than 70 per cent of the total, according to a report released at an industry forum held in central China’s Henan province in December
Meanwhile, a new growth engine has emerged for the sector
Lab-grown diamonds are chemically and physically identical to natural ones, with the same material properties. For industrial applications, however, they offer distinct advantages
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