China blockades artificial diamonds, and the tools to make them

Quick Overview

China is implementing export controls on artificial diamonds, related equipment, and rare earth materials, leveraging the Foreign Direct Product Rule (FDPR) and its own extraterritorial rules to maintain global dominance in these critical supply chains, particularly as the US and other countries seek to build up their own capabilities in areas like high-tech manufacturing, semiconductors, and aerospace.

Key Points: China's Ministry of Commerce restricted exports of technology and equipment used in six-sided presses, essential for producing lab-grown diamonds, as of October 9, 2025. The US is reportedly the third-largest buyer of Chinese diamond powders and grinding wheels, which are crucial for high-precision manufacturing in semiconductors, quantum devices, and military applications like radar components and tool munitions. The US Foreign Direct Product Rule (FDPR), dating back to 1959, allows US authorities to restrict sales of products made using American technology, even if manufactured abroad, impacting global supply chains. Chinese experts view the new export controls as 'essentially a blockade' designed to keep technology at home and prevent other countries, especially India, from learning production methods. Zhengzhou, in Henan province, is a major hub for lab-grown diamonds, producing about 95% of the world's synthetic diamonds, with 80% coming specifically from Henan. Henan province is investing 1 trillion yuan (US$140 billion) to create an industrial hub for diamond and superhard materials technology by the end of 2025. Chinese scientists recently developed a diamond-graphene composite material with high electrical conductivity and toughness, ideal for air and spacecraft engines.

Context: The video, titled 'Inside China Business,' discusses China's strategic tightening of export controls on critical materials and technologies, focusing heavily on lab-grown diamonds and the equipment needed for their production. This action occurs against a backdrop of geopolitical tension, particularly concerning US efforts to restrict China's access to advanced technology like semiconductors, exemplified by the use of the US FDPR against Chinese firms like Huawei. The speaker contrasts the growing industrial demand for synthetic diamonds with the geopolitical maneuvering surrounding these critical supply chains.