{
  "id": 11072436,
  "title": "How China became the world’s gold superpower",
  "url": "https://urgent.news/2026/10/01/how-china-became-the-worlds-gold-superpower",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T01:00:07.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/opinion/china-opinion/article/3369170/how-china-became-worlds-gold-superpower"
  },
  "original_language": "en",
  "account": "China's journey to becoming the world's gold superpower is a remarkable industrial turnaround. For centuries, the country revered gold but never had a gold-based economy due to scarce domestic deposits. In 1975, as China embarked on economic modernisation, it desperately needed gold to fund reforms and bolster foreign reserves. Despite its efforts, China produced only 13.8 metric tons of gold annually, far less than South Africa, Canada, the United States, and Australia.\n\nIn 2007, China overtook South Africa to become the world's largest gold producer, a position it has held ever since. Today, China churns out 380 metric tons of gold annually, surpassing South Africa, Indonesia, and Mexico combined. This achievement was not a miraculous bonanza but a result of deliberate state-led industrial policy, technological innovation, and meticulous planning.\n\nFrom the 1990s, Chinese state research institutes mastered the pressure oxidation (POX) process for treating refractory ore, allowing miners to profitably process low-grade ore with minimal gold content. By the late 2000s, China had secured two world-class mines, Dadonggou and Wangu, which significantly boosted its gold output.\n\nChina's dominance in the POX race is not due to inventing the technology or having the lowest operating costs. Instead, it is the most efficient player, thanks to careful planning and coordination. The country runs hundreds of medium-sized mining clusters across the country, minimizing the impact of potential accidents or glitches. Unlike South Africa's mines, China's are tightly organized by the state, integrating production, financing, transport, and security.\n\nHowever, the boom came with a dark side. In 2016, China mined 453.5 metric tons of gold, but local governments prioritized output over the environment, leading to serious pollution. In response, Beijing enforced strict environmental and safety standards, shutting down thousands of small, illegal, or heavily polluting mines. Output fell by over 25% in 2017 before stabilizing at around 380 metric tons annually.\n\nThe cost advantage is real, with Chinese operating costs being 30-50% lower than those in North America or South Africa. Chinese POX facilities typically need 30-50% less upfront capital than their Western rivals. China's booming gold industry is cleaner, more efficient, and more competitive, with leading operators expanding aggressively overseas.\n\nThe country's dominance in gold production is not solely due to rich deposits but rather its industrial ecosystem. China recovers tonnes of gold every year as a by-product of its smelters, amounting to 80 metric tons annually, comparable to Kazakhstan's entire annual output. This, along with its dominance in rare earths, is a testament to China's superior industrial planning and organization.\n\nDespite being the top gold producer since 2007, China has also aggressively imported gold, about 1,000 metric tons annually. About 80% of this gold goes to domestic consumption, while the People's Bank of China steadily builds up its reserves, insulating China from Western sanctions and building trust in its currency as a global one.",
  "summary": "Perhaps no story illustrates the secret of China’s industrial success better than its rise as the world’s gold superpower. China has revered the metal for millennia, yet it has never had a gold-based economy. Its own deposits were simply too scarce. In 1975, as China began its economic modernisation, it desperately needed gold to fund reform and build up foreign reserves. Despite its best…",
  "key_points": [
    "China became world's largest gold producer in 2007, surpassing South Africa.",
    "Mastered pressure oxidation (POX) process for low-grade ore in 1990s.",
    "Aggressive gold imports about 1,000 metric tons annually for domestic use."
  ],
  "editors_take": "China's ascent to gold superpower status showcases its ability to leverage state-led industrial policy, technological innovation, and strategic planning to overcome initial resource limitations and dominate a critical market.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Reuters Business via SCMP",
        "title": "How China became the world’s gold superpower",
        "url": "https://urgent.news/2026/10/01/how-china-became-the-worlds-gold-superpower-11073434",
        "published": "2026-10-01T01:00:07.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}