China, the world’s largest consumer of gold, is moving to relax licensing norms for gold imports and exports, reinforcing its strategy to reduce reliance on the US dollar. A draft proposal from the People’s Bank of China (PBOC) outlines plans to expand the use of “multi-use permits”—a faster approval system first introduced in 2016 to streamline cross-border gold trade.
Under the proposal, more ports will be authorized to handle these permits, their validity will be extended to nine months, and restrictions on the number of times each permit can be used will be removed. The changes aim to reduce bureaucracy, speed up shipments, and strengthen China’s position in global gold flows. According to the PBOC, easing the rules will “enhance vitality and respond to external shocks by improving the business environment at ports.”
The shift comes as Beijing continues its aggressive gold-buying spree. In August, the PBOC increased its holdings for the 10th consecutive month, extending a trend that has already reshaped central-bank demand worldwide. Domestic appetite has remained equally strong, with Chinese investors steadily purchasing gold bars and coins as a safe-haven asset.
Gold prices have surged nearly 40% this year, driven by record central-bank buying, geopolitical instability, and expectations of US interest rate cuts. By easing licensing restrictions, China is signaling its intent to further integrate gold into its financial system, creating both a buffer against currency volatility and a lever for long-term reserve diversification.
The proposal, now open for public consultation until October 13, underscores Beijing’s determination to pivot away from dollar dependence while cementing its influence in global commodities markets.
