Chacheng, China, emerges as a major global synthetic diamond hub

Chacheng, an agricultural county in China's Henan Province, has transformed into a major global hub for synthetic diamond production. Formerly known for chili pepper farming and cattle ranching, the region now produces massive quantities of gemstones, including 6 billion carats of single-crystal diamonds and 15 billion carats of diamond micro-powder annually.

In 2023, China produced over 70% of the world's synthetic diamonds, totaling approximately 22 million carats, with Chacheng contributing nearly half of that output. By 2024, the county's share of the industry is expected to rise to roughly 60%. This surge in production has significantly lowered prices; a 1-carat synthetic diamond can now be purchased online for 1,000 to 2,000 yuan, often making the stone less expensive than the 18K gold setting it sits in.

The Chacheng High-tech Zone management attributes this success to long-term local government policies, support from pioneering enterprises, and digital innovation by the younger generation. The industry's roots trace back to the 1960s, when China sought to reduce its dependence on imported diamonds to support industrialization.