A Case Study of China's Economic Transformation: How a Small Northern County Made Diamond Rings Accessible to Ordinary Households

Located at the junction of Henan, Shandong, Jiangsu, and Anhui provinces, Zhecheng County in Henan was once a nationally designated poverty-stricken county. Today, it produces over 90% of China’s diamond micropowder and nearly half of the country’s lab-grown diamonds, making diamond rings—once considered unattainable—accessible to the masses.

Despite being a typical agricultural county with no mountains or significant mineral resources, Zhecheng has defied geographical limitations to become the "Diamond Capital." How did this small county achieve such a transformation?

### 1. The "Diamond Capital" Enables "Carat Freedom" At the recent 15th China Henan International Investment and Trade Fair, a 156.47-carat lab-grown diamond rough, produced by Henan Liliang Diamond Co., Ltd., drew widespread attention for its size and brilliance. Certified by the International Gemological Institute (IGI), this diamond is now recognized as the world’s largest single-crystal lab-grown diamond rough.

The famous slogan, "A Diamond is Forever," has long positioned diamonds as symbols of love and eternity, but their high prices kept them out of reach for many. Now, in Zhecheng, people joke about having achieved "carat freedom."

At Huifeng Diamond Co., Ltd.’s factory store in Zhecheng, "post-00s" couple Li Jiaqing are shopping for an engagement ring. "I heard Zhecheng’s lab-grown diamonds are as good as natural ones but much more affordable," Li said. Store manager Xie Menghe explained that lab-grown diamonds often surpass natural diamonds in color and clarity while costing just one-fifth to one-tenth the price.

"Carat freedom" is made possible by technological advancements. Unlike natural diamonds, which require billions of years to form, high-purity diamond rough can be "grown" in just 7 to 15 days inside a cubic press at Liliang Diamond’s facility.

This phenomenon has also spurred industrial tourism in Zhecheng. The county now hosts 65 registered diamond retailers and has attracted over 600,000 visitors this year through "diamond+" initiatives.

Beyond jewelry, diamonds are widely used in oil drilling, geological exploration, precision machining, automotive manufacturing, and aerospace. Zhecheng’s high-tech industrial zone has over 200 ultra-hard material enterprises, including two national-level "Little Giant" firms and 15 provincial-level specialized SMEs. The county has also contributed to drafting the world’s first lab-grown diamond product standard.

By the end of September, Zhecheng had produced approximately 4.5 billion carats of diamond monocrystals, 11 billion carats of diamond micropowder, and 9 million carats of lab-grown diamonds—nearly half of China’s total output. Today, the industry consensus is: "The world’s diamonds look to China, China’s diamonds look to Henan, and Henan’s diamonds look to Zhecheng."

### 2. Four Decades of Polishing the "Diamond" Dream How did an agricultural county with no natural diamond resources build a thriving industrial sector? The answer lies in early foresight and persistence.

In the 1980s, Feng Jinzhang, an engineer at Zhengzhou Abrasives Research Institute (where China’s first synthetic diamond was created), returned to Zhecheng to establish its first diamond factory. Though Feng passed away shortly after, his efforts trained a generation of technical experts who later seeded the industry’s expansion.

Wang Zhanxi, one of the first entrepreneurs to venture into diamond tools, recalls the early struggles: "We started small, traveling with just dry rations. But we had grit." He credits the county government’s unwavering support and long-term vision for the industry’s success.

To foster growth, Zhecheng introduced policies like the *Development Outline for China’s Diamond Capital* and a five-year plan for ultra-hard materials, focusing on strengthening monocrystal production, refining micropowder, expanding diamond products, and enhancing jewelry manufacturing.

Recent initiatives include digital and green transformations, with companies adopting smart manufacturing and high-end applications. "Looking back, the county’s early judgment on the diamond industry’s potential was spot-on," said He Decai, deputy director of Zhecheng’s Industry and Information Technology Bureau.

### 3. Forging New Paths to Stay Ahead Despite its success, Zhecheng faces challenges like market volatility and shrinking product differentiation. To maintain its edge, the county is exploring new frontiers.

Companies like Huifeng Diamond are diversifying into semiconductor thermal materials and functional applications. "To lead, we must innovate beyond current boundaries," said Pang Aihong, general manager of Henan Houde Diamond Technology.

Meanwhile, Liliang Diamond has broken foreign monopolies with its proprietary octahedral diamond for IC chip processing. "We’ll keep investing in R&D to meet advanced manufacturing demands," said Chen Yanan, the company’s project director.

Cultural innovation is also key. Huifeng’s cloisonné-inspired jewelry blends tradition with modernity, boosting market appeal.

To protect its reputation, Zhecheng has cracked down on counterfeit diamonds, with the market supervision bureau launching enforcement campaigns. "We’ll strengthen cross-regional cooperation to safeguard consumers and our ‘Diamond Capital’ brand," said Zhang Dejun, deputy director.

On the shores of Ronghu National Wetland Park, Zhecheng’s upgraded Diamond Trading Center—equipped with AI-powered systems and immersive showrooms—is set to shine even brighter.