Editor’s Note
This article, sourced from Chinese media citing Reuters, reports on the first major project under a large-scale Japanese investment framework in the U.S. It highlights the strategic push to establish domestic synthetic diamond production. We present this as a developing business and geopolitical story.
On January 29, 2026, Chinese media outlet Global Times reported that within the slow-moving Japanese investment plan in the United States, the establishment of a synthetic diamond production base has emerged as the first major project. Citing a Reuters report, the article stated that within the $550 billion (approximately ¥85 trillion) Japanese investment framework agreed upon in July last year, the U.S. side is strongly promoting the “domestication” of synthetic diamonds. A specific project mentioned involves the De Beers Group subsidiary Element Six, under the British resource giant Anglo American, with an estimated project scale of $500 million (approximately ¥77 billion). It is expected to be officially announced ahead of Prime Minister Sanae Takaichi’s scheduled visit to the U.S. in March.
The article explained that synthetic diamonds are a strategic material essential for dual-use (military and civilian) technologies, such as ultra-precision polishing for semiconductors, quantum devices, and military radar components. It pointed out that since China possesses the majority of the world’s production capacity, the U.S. government is urging Japanese companies to participate to accelerate the construction of a Japan-U.S.-specific supply chain independent of China.
The article introduced the analysis of Zheng Hongjun, a senior researcher at the China Metallurgical Industry Planning and Research Institute. According to the article, Zheng pointed out that China’s synthetic diamond production accounted for 63% of the world’s total in 2024, stating, “There is no doubt it is the world’s absolute main force.” He argued that while Japan-U.S. cooperation holds advantages in high-end areas like high-purity products and defect control technology, it faces decisive weaknesses such as a lack of industrial clusters and a high-cost structure.
The article also cited an AP report, mentioning that the Peterson Institute for International Economics described investment pledges from Japan, Europe, and South Korea to the U.S. as “shrouded in a fog of uncertainty.” It conveyed the institute’s view that since the agreements were secured under U.S. pressure, “close to coercion,” there is a possibility that countries may plan to withdraw from their pledges, making fulfillment extremely difficult.