China’s gold strategy is becoming increasingly interesting.
According to S&P Global Ratings, China is building a global network of gold vaults designed to support a greater role for the yuan in international trade.
The idea is that yuan-denominated transactions could become more closely linked to gold through vaults in Hong Kong and other locations around the world. This could potentially make the yuan more attractive and easier to use in international trade.
China has been steadily increasing the strategic importance of gold, and Beijing reportedly reclassified gold as a “strategic mineral” in 2025. At the same time, Chinese gold miners are expected to expand faster than many of their global competitors.
Put these pieces together: greater emphasis on domestic gold production, more infrastructure for storing physical metal around the world, and an effort to expand the yuan’s role in international trade.
Gold increasingly looks like part of the infrastructure behind China’s long-term monetary strategy.
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