China’s Golden Ambitions: How Beijing Is Rewriting the Rules of the Global Bullion Market

In 2025, China is quietly but decisively reshaping the global gold landscape. With bullion prices soaring past $3,700 an ounce and geopolitical tensions mounting, the People’s Bank of China (PBOC) is implementing a series of strategic moves designed to strengthen the country’s position as both a global gold trading hub and a geopolitical force. At the heart of these reforms is the easing of import restrictions, a campaign to attract foreign sovereign gold reserves, and an unprecedented pace of official gold buying — all signaling China’s deeper ambitions to lessen reliance on the U.S. dollar and bolster the international role of the yuan.

One of the most immediate developments has been the PBOC’s draft regulation to liberalize gold imports. The central bank now proposes to extend the validity of “multi-use permits” from six to nine months and to remove restrictions on the number of times they can be used. This technical but impactful shift will simplify the process for importing gold into China, reduce the current import premiums local buyers pay over global benchmarks, and give refineries and exporters greater flexibility. More ports across the country are also being authorized to process gold shipments, smoothing logistical friction and allowing the market to respond more swiftly to global demand surges.

Timing is key. The yuan has been strengthening against the U.S. dollar since April 2025, making dollar-priced gold more affordable for Chinese buyers. In this context, looser import rules not only respond to internal demand but may also help moderate the yuan’s rise by stimulating dollar purchases — subtly assisting Beijing’s broader currency management strategy. Analysts such as Philip Klapwijk suggest that these steps are as much about monetary policy as they are about commodity flows.

But China’s strategy extends far beyond import liberalization. In a more ambitious play, Beijing is courting foreign central banks — particularly in allied or “friendly” nations — to store part of their sovereign gold reserves within China’s borders. According to sources close to the matter, the PBOC is leveraging the Shanghai Gold Exchange (SGE) and its international arm, established in 2014, to attract these reserves. Initial interest has reportedly come from at least one Southeast Asian country. By offering custodian services, China aims to position itself as a viable alternative to traditional Western storage hubs like London, New York, or Zurich — a symbolic step toward a multipolar monetary system less dependent on the dollar.

This initiative comes at a moment of global reassessment. After the West froze $300 billion of Russia’s reserves in 2022, many emerging economies began to question the security of dollar-denominated assets held abroad. Gold — unencumbered by sanctions and universally recognized — emerged as a favored hedge. China has capitalized on this shift. Over the past three years, it has dramatically ramped up its own official gold reserves: 225 metric tons in 2023, 44 tons in 2024, and 21 tons in the first half of 2025. Officially, China’s holdings now stand at 2,300.4 tons, worth $244 billion — making it the fifth-largest central bank holder in the world. However, analysts believe additional state-controlled reserves exist off-books within domestic institutions.

There is considerable speculation about Beijing’s long-term gold accumulation goals. Some insiders suggest a target of 5,000 tons — a figure first floated in 2009 — would better align with China’s status as the world’s second-largest economy. Given that China’s GDP represents roughly 64% of that of the U.S., whose official reserves total 8,133.5 tons, such a number would not be unreasonable. Achieving this would catapult China past Germany and Italy, narrowing the symbolic and strategic gap with Washington.

Meanwhile, Beijing is taking steps to internationalize its domestic gold market. In 2025, the Shanghai Gold Exchange opened its first offshore vault and trading contracts in Hong Kong, aiming to facilitate yuan-denominated transactions and boost liquidity in Asia. Domestically, China is also the world’s largest consumer of gold in jewelry, bullion bars, and investment-grade coins — ensuring robust internal demand. Moreover, the PBOC has authorized insurers to invest in bullion, potentially unlocking a vast new source of institutional buying.

These moves reflect a broader ambition: to build a parallel financial infrastructure that gives Beijing greater autonomy in global trade and monetary affairs. As Jan Nieuwenhuijs of “Money Metals Exchange” notes, every incremental liberalization in China’s gold market must be understood within this framework. Although full capital account openness remains a distant goal, each regulatory easing — from permit reform to custodianship of foreign reserves — lays groundwork for a more assertive Chinese presence in the global bullion trade.

Still, challenges remain. China’s custodian services are unlikely to rival the scale and liquidity of London’s vaults in the short term. The Bank of England holds over 5,000 tons of gold, anchoring its status as the world’s premier gold trading center. Moreover, if central banks shift their reserves to China, they may sacrifice ease of access and established legal protections in Western jurisdictions. As Nicholas Frappell of ABC Refinery cautions, such a move could complicate liquidity — a key factor for large institutional holders.

Nonetheless, the direction of travel is clear. China is using every available lever — import liberalization, sovereign reserve custodianship, domestic accumulation, and market infrastructure — to reposition itself as a central player in the global gold ecosystem. This transformation is not just about commodity markets. It is about monetary sovereignty, geopolitical influence, and the gradual reshaping of the international financial order. As gold edges ever closer to $4,000 an ounce, Beijing’s golden ambitions may soon prove to be more than symbolic.