Export Controls Tighten: Mapping the Superhard Materials Industry Chain

superhard materials export controls just tightened — here’s a clear, investor-focused breakdown you can act on now.

Key Points

Quick market reaction: cultivated-diamond rally and stock moves

The cultivated-diamond sector (培育钻石, péiyù zuànshí) led gains on October 14 after an official announcement expanding export-control lists.

At the close, Huanghe Xuanfeng (Huánghé Xuànfēng 黄河旋风) hit its daily 涨停 (limit-up).

Other notable movers included Liliang Diamond (Lìliàng Zuànshí 力量钻石), Huifeng Diamond (Huìfēng Zuànshí 惠丰钻石) and Sifangda (Sìfāngdá 四方达), which all rose more than 10% intraday.

What the policy change says: broader export controls and timing

The Ministry of Commerce (商务部, Shāngwùbù) together with the General Administration of Customs (海关总署, Hǎiguān Zǒngshǔ) issued a notice expanding export-control measures.

The expanded list covers several categories, including:

• Superhard materials (超硬材料, chāoyìng cáiliào),
• Rare-earth equipment and raw & auxiliary materials (稀土设备和原辅料, xītǔ shèbèi hé yuán fǔliào),
• Certain heavy rare-earth elements including holmium (钬, huǒ),
• Lithium batteries (锂电池, lǐ diànchí) and artificial-graphite anode materials (人造石墨负极材料, rénzào shímò fùjí cáiliào).

The measures are scheduled to take effect on November 8, 2025.

Market commentary notes the control scope is broader than the August 2024 list, underscoring the strategic importance of superhard materials.

What are “superhard materials”?

In public descriptions, the term primarily refers to:

• Diamond (金刚石, jīngāngshí) — including natural and synthetic (man-made) diamonds;
• Cubic boron nitride (立方氮化硼, lìfāng dānhuà péng).

Data cited by the Henan Provincial Department of Industry and Information Technology (河南省工信厅, Hénán Shěng Gōngxìn Tīng) indicate that synthetic diamond accounts for over 90% of industrial superhard-material applications worldwide.

As a result, diamonds and diamond products dominate the superhard-materials category.

Industry segmentation: product type, synthesis method and end markets

Industry reports divide synthetic diamonds into two main application groups.

1. Industrial diamonds — used for cutting, drilling, grinding and other manufacturing applications.
2. Cultivated (gem-quality) diamonds — aimed at the consumer jewelry market.

Representative companies in industrial diamonds include Zhongbing Hongjian (Zhōngbīng Hóngjiàn 中兵红箭), Yujin Diamond (Yù Jīngāngshí 豫金刚石), and Huifeng Diamond (惠丰钻石).

Representative companies in cultivated (gem-quality) diamonds include Sifangda (四方达), Liliang Diamond (力量钻石) and Zhongbing Hongjian (中兵红箭).

By synthesis technique, two main routes dominate:

• High Temperature High Pressure (HTHP) synthesis — historically the main industrial route.
• Chemical Vapor Deposition (CVD) — key for producing single-crystal and engineered diamonds for optics and high-tech uses.

Companies known for HTHP include Zhongbing Hongjian (中兵红箭) and Huanghe Xuanfeng (黄河旋风).

Companies active in CVD include Sifangda (四方达) and Guoji Jinggong (GuóJī Jīnggōng 国机精工).

Downstream applications: where superhard materials matter

Superhard materials have a wide set of downstream uses across industrial and high-tech sectors.

• Consumer electronics (消费电子, xiāofèi diànzǐ) — polishing and precision components for displays; an adjacent supplier is Lens Technology (Lánsī Kējì 蓝思科技).
• Photovoltaics (光伏, guāngfú) — wafer processing tools and related equipment; firms like LONGi (Lóngjī Lǜnéng 隆基绿能) sit in that supply chain.
• Oil and gas extraction — drill-bit and cutting-tool materials for harsh environments; PetroChina (PetroChina / Zhōngguó Shíyóu 中国石油) is a major downstream user.
• Jewelry and gemstones (珠宝首饰, zhūbǎo shǒushì) — cultivated diamonds for consumer markets.
• Defense and military applications (军工, jūngōng) — precision, durability and high-performance optical components.
• Semiconductors (半导体, bàndǎtǐ) — emerging uses for engineered/functional diamonds in thermal management and optics.

Analysts’ view and industry outlook: strategic value vs cyclical pressure

Brokerage notes like CITIC Securities (中信证券 Zhōngxìn Zhèngquàn) flagged that the broadened export controls reinforce the strategic value of superhard materials.

Zhongyuan Securities (中原证券 Zhōngyuán Zhèngquàn) observed that under weak global demand, traditional superhard-materials and related products were under pressure: exports showed higher volumes but lower prices, and the sector had entered a downcycle.

Research houses emphasize a structural opportunity.

As technology evolves, “functional” diamonds — engineered diamonds with tailored thermal, optical or electronic properties — are moving from lab to commercial application in semiconductors, defense and optics.

If commercialization and scale-up continue, these applications could open a new “blue ocean” for superhard-materials companies.

Key takeaways for investors and supply-chain participants

• Policy risk: the November 8 implementation date means companies with export-heavy business models may face immediate regulatory and logistical adjustments.
• Strategic value: the broadened list signals government intent to protect technologies and materials important to national security and advanced manufacturing.
• Market bifurcation: the traditional low-tech industrial-diamond market is cyclically pressured, while high-value functional diamonds (for semis, optics, defense) present medium- to long-term growth potential.
• Company positioning: firms with CVD capabilities and customers in semiconductors, optics or defense may be better positioned to benefit from the shift.

Quick actions investors and operators can consider

• Map revenue exposure to exports and to sensitive end-markets (semis, defense, optics).
• Prioritize monitoring of company disclosures around licensing, export permits and supply-chain partners before November 8, 2025.
• Track CVD-capable firms and partnerships with semiconductor and optics players for signals of higher-value contract wins.
• Watch market pricing vs volumes in export data for signs the downcycle is bottoming or continuing.

Risk reminder

This article summarizes public information and market commentary; it is for informational purposes only and does not constitute investment advice.

References and source links — follow them for the official notices and full industry write-ups.

References

• Export controls tighten! Superhard materials industry-chain review – Eastmoney Research Center
• Ministry of Commerce of the People’s Republic of China – Ministry of Commerce of the PRC
• General Administration of Customs of the People’s Republic of China – General Administration of Customs

Stay alert to policy shifts, company filings and downstream demand signals as this export-control move reshapes the global superhard materials landscape.