Behind the Money Best of: How the diamond industry lost its sparkle
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Mar 18, 2026 
Eleanor Olcott, FT China technology correspondent who visited Henan’s diamond factories, and Leslie Hook, FT natural resources editor and industry analyst, explore lab-grown diamonds' rise. They describe Chinese production methods, the huge price gap with natural stones, De Beers' sale and valuation pressures. They debate whether synthetics will democratize diamonds or shrink the natural market.
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Zhengzhou Jewelry Market Shows Labs Outselling Naturals
- Eleanor Olcott visited an eight-story jewelry market in Zhengzhou where stall after stall sold lab-grown diamonds that look identical to natural stones.
- Shopkeepers said many natural-diamond stores closed or switched to synthetics as customers increasingly try on and buy affordable lab-grown earrings and rings.
China Shifted From Industrial To Jewelry Grade Production
- China built its synthetic diamond industry from the 1960s onward to replace Soviet imports and initially served industrial uses like drill bits and abrasives.
- Over time technology improved, allowing jewelry-grade lab-grown diamonds to be produced cheaply and at scale.
Factory Tour Reveals Weeklong Diamond Growth Process
- At Jarefu's factory founder Feng Tanjun showed row after row of 5m-by-5m high-pressure, high-temperature machines that simulate Earth's conditions to grow diamonds in about a week.
- Feng pulled out large graphite blocks with diamonds embedded that then go through purification and cutting using Chinese-made, low-cost equipment.