Chinese authorities are preparing the most significant revision in years to the country's regulatory framework governing gold and gold product imports and exports, aiming to facilitate cross-border trade while strengthening customs supervision over individuals and businesses dealing in precious metals.
The draft amendments, jointly prepared by the People's Bank of China (PBOC) and the General Administration of Customs, are intended to align existing regulations with evolving economic conditions, legal requirements, and current policy priorities, while simplifying administrative procedures and improving the efficiency of customs supervision.
Under the proposed rules, the existing provision requiring the PBOC and customs authorities to jointly formulate regulations governing individuals carrying or mailing gold across China's borders would be removed. Instead, cross-border movements of gold would fall primarily under customs supervision, signaling a reduction in the central bank's direct regulatory role in this area.
The draft also introduces measures designed to improve convenience for businesses and the public by formalizing practices that have already proven effective, while strengthening pre-entry supervision of foreign trade companies acting as agents and updating the penalty framework for regulatory violations.
Gold Imports Reach Highest Level in More Than Two Years
The regulatory overhaul comes as China's gold imports continue to surge despite signs of cooling domestic demand.
According to the latest customs data, China imported approximately 163 tonnes of gold in May 2026, the highest monthly volume since March 2024.
Total gold imports during the first five months of the year reached approximately 692 tonnes, representing a 76% year-on-year increase compared with the same period in 2025, supported by gold prices remaining roughly 25% below their record highs reached in early 2026.
Market analysts attribute the strong import demand to continued investor interest in physical gold bars, along with growing participation in consumer gold accumulation plans that encourage gradual bullion purchases.
Domestic Price Premium Continues to Support Imports
According to the World Gold Council (WGC), China's net gold imports reached 157 tonnes in April, rising 10% month-on-month and 40% year-on-year, marking the strongest monthly performance since March 2024.
The Council noted that the persistent premium of domestic gold prices over international prices remained the primary driver encouraging higher import volumes.
The WGC also expects relative stability in China's jewelry sector in the coming months as manufacturers replenish inventories following weak buying activity earlier this year. However, it warned that if gold prices continue to weaken, some jewelers may postpone purchases in anticipation of lower prices.
Investment Demand Shows Signs of Cooling
Despite robust import figures, several indicators suggest that investment demand for gold in China has begun to moderate.
Gold-backed exchange-traded funds (ETFs) recorded net outflows exceeding RMB 10 billion (approximately US$1.48 billion) during the month leading up to early June, reflecting increasing investor caution amid heightened market volatility and growing uncertainty over the traditional "buy-the-dip" investment strategy.
Meanwhile, Hong Kong-listed gold mining shares also came under pressure, with major producers including Zijin Mining, Shandong Gold, and Zhaojin Mining posting notable declines.
Shanghai Gold Exchange Withdrawals Fall to Multi-Year Low
Additional evidence of slowing physical demand emerged from the Shanghai Gold Exchange (SGE), where gold withdrawals totaled just 63.5 tonnes in May—the lowest monthly level since February 2020, during the first wave of the COVID-19 pandemic, and roughly half the volume recorded in March.
The latest data suggest that China's gold market is entering a transitional phase, characterized by continued strength in imports driven by inventory replenishment, while both investment and consumer demand soften as market participants await clearer direction for gold prices during the second half of the year.
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