From Poverty to Prosperity: How a Small Chinese Town Democratized Diamond Access

Deep News
12/04

In Zhecheng County, Henan Province—once a nationally designated poverty zone at the junction of four provinces—industrial transformation has rewritten economic fortunes. Now producing over 90% of China’s diamond micropowder and nearly half its lab-grown diamonds, this unassuming agricultural county has become synonymous with affordable luxury.

The rise of Zhecheng’s diamond industry defies geographical logic. Without mineral resources, the county leveraged human capital and policy support to build a complete industrial chain spanning raw materials, equipment manufacturing, and jewelry production. Listed companies like Henan Liliang Diamond Co. exemplify this success—their 156.47-carat lab-grown diamond, certified by IGI as the world’s largest single-crystal specimen, symbolizes the sector’s technological prowess.

"Carat freedom" has become local parlance as synthetic diamonds—indistinguishable from natural stones but priced 80-90% lower—reshape consumer behavior. At Huifeng Diamond’s factory store, young couples like Li Jiaqing discover engagement rings combining superior clarity with accessibility. Industrial tourism flourishes too, with diamond-themed attractions drawing 600,000 visitors this year.

Behind this transformation lies four decades of persistence. The industry took root in the 1980s when returnee engineer Feng Jinzhang established Zhecheng’s first diamond plant. Subsequent generations of entrepreneurs expanded markets while local governments maintained strategic focus—implementing specialized development plans and industrial clusters. Today, Zhecheng hosts 200+ ultra-hard material enterprises, including 17 specialized "little giant" firms, collectively producing 4.5 billion carats of diamond crystals annually.

Facing new challenges, companies are diversifying into semiconductor thermal materials and aerospace applications. Liliang Diamond’s proprietary octahedral diamonds for IC chip processing have broken foreign monopolies, while Huifeng’s cloisonné-inspired jewelry blends tradition with innovation. Meanwhile, authorities combat counterfeit products through cross-regional enforcement, safeguarding Zhecheng’s hard-won reputation.

The upcoming Diamond Trading Center upgrade—featuring AI authentication and immersive exhibitions—signals Zhecheng’s ambition to solidify its status as China’s diamond capital. As industry insiders affirm: "The world’s diamonds look to China, China’s to Henan, and Henan’s to Zhecheng."

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