Abstract: Since 2020, the global diamond industry has been operating in a slump and sluggish environment.The industry has faced multiple challenges, including globalization and deglobalization, resource scarcity and demand bottlenecks, resource exploitation and sustainability, and competition between natural and lab-grown diamonds, coupled with the realistic conditions of China's economic transformation, shifting consumer behaviors, demographic shifts, and information equality. This study reviewed the current development status of the natural diamond industry, analyzed its difficulties, challenges, and underlying reasons, and explored future opportunities. The study concluded that the scarcity, historical significance, and emotional resonance of natural diamonds will provide core support for the industry's recovery and sustainable development, underpinned by empowering technologies such as big data and artificial intelligence supported by effective institutional frameworks.