China Tightens Grip: Export Curbs on Artificial Diamonds Amid U.S. Trade Tensions

China is imposing export restrictions on artificial diamonds and related materials to tighten its control over high-tech manufacturing. This move, aligning with trade tensions with the U.S., includes licenses for exports of crucial materials used in semiconductors and clean energy production.

China announced on Thursday that it will impose export restrictions on several types of artificial diamonds, a move set to coincide with the end of the current U.S.-China tariff truce. The new regulations will take effect from November 8, requiring export licenses for certain artificial diamond products, according to a joint statement by China's commerce ministry and customs authority.

Artificial diamonds, known for their extreme hardness, play a vital role in high-precision manufacturing. They are essential in semiconductor polishing, machining hard materials in quantum devices, and managing heat in advanced electronics, along with having potential military applications.

In addition to diamonds, China has extended export controls to certain lithium-ion batteries and artificial graphite anode materials, impacting the global clean energy supply chain. Five new rare earth elements have also been added to China's export control list as tensions rise ahead of a pivotal meeting between U.S. President Trump and Chinese President Xi Jinping. Last year's $30 million exports of these targeted diamond materials to the U.S. highlight the stakes in these ongoing trade negotiations.

(With inputs from agencies.)