China Elevates Gold to Strategic Mineral Status

China has made gold a strategic mineral and cornerstone of financial and industrial security in its Gold Industry High-Quality Development Action Plan for 2025-2027. The move marks a shift from treating gold as a financial asset to a pillar of national security, according to the plan jointly issued by nine top government agencies.

The decision was made in response to global economic uncertainty and China's desire to reduce external dependence on other countries' currencies. In 2025, China surpassed South Africa as the largest gold producer and India as the largest consumer, with its domestic output increasing just 1% to 381 tonnes, while overseas production by top Chinese miners surged 25% to 90 tonnes.

China's central bank has resumed purchasing gold since late 2022, adding over 40 tonnes in the first half of 2026, more than double the 19 tonnes added in the same period of 2025. However, China's official gold holdings still account for only 6.7% of its total reserves, which is lower than the developed-market median of 16.6%.

Leading Chinese miners such as Zijin Mining and Shandong Gold have stepped up acquisitions both domestically and abroad, with deal sizes jumping from hundreds of millions to billions of dollars. China has also opened its first offshore gold vault at Hong Kong's airport, supporting yuan-denominated gold trading and conversion outside the US dollar system.