{
  "id": 11073434,
  "title": "How China became the world’s gold superpower",
  "url": "https://urgent.news/2026/10/01/how-china-became-the-worlds-gold-superpower-11073434",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T01:00:07.000Z",
  "source": {
    "name": "Reuters Business via SCMP",
    "slug": "reuters-business-via-scmp",
    "url": "https://www.scmp.com/opinion/china-opinion/article/3369170/how-china-became-worlds-gold-superpower"
  },
  "original_language": "en",
  "account": "China's ascent to the world's leading gold producer is an extraordinary tale of industrial transformation. For millennia, the Chinese revered gold, but never before possessed the resources to back a gold-based economy. In 1975, the nation embarked on a modernisation push, desperately in need of gold to fund reforms and bolster foreign reserves. Despite valiant efforts, China's annual production averaged a mere 13.8 metric tons, far short of South Africa's output. Over time, China's gold production trailed behind major players, including Canada, the United States, and Australia.\n\nHowever, everything changed in 2007 when China surpassed South Africa to claim the title of world's largest gold producer. Today, China produces 380 metric tons annually, a figure that surpasses South Africa, Indonesia, and Mexico combined. This remarkable feat is the result of a combination of technological innovation, state-led industrial policy, and meticulous planning.\n\nAt the core of China's success lies the implementation of pressure oxidation (POX) for treating low-grade ore. In the 1990s, Chinese state research institutes mastered this technique, enabling miners to profitably process ore with alarmingly low gold content, as little as one gram per metric ton of rock. This technological breakthrough allowed China to unlock vast, previously overlooked reserves, effectively doubling the country's gold output.\n\nChina's dominance in the POX race, however, is not solely due to its technological prowess. The nation's efficiency stems from its careful planning and coordination of hundreds of medium-sized mining clusters across the country. Unlike its competitors, China does not rely on a few behemoth facilities, thus ensuring stability and resilience in the face of potential setbacks. Furthermore, China's state-controlled operations streamline production, financing, transport, and security, creating a tightly integrated system that outperforms its competitors.\n\nWhile China's operating costs are slightly higher than Russia's, they are notably lower than those in North America and South Africa. This cost advantage, coupled with China's lower upfront capital requirements for POX facilities, makes the country an attractive destination for gold production. As a result, Chinese POX facilities typically need 30 to 50 percent less upfront capital than their Western rivals.\n\nHowever, China's gold rush has not been without consequences. In its pursuit of output, the nation sometimes prioritised profit over environmental considerations, leading to a surge in pollution. In response, Beijing implemented strict environmental and safety standards, shutting down thousands of small, illegal, or heavily polluting mines. As a result, gold production has fallen by more than 25 percent, but the industry has become cleaner, more efficient, and more competitive.\n\nChina's gold production prowess extends beyond its own borders, with leading operators expanding aggressively overseas, building plants across Africa, Central Asia, South America, and even Papua New Guinea. China's dominance in gold production is not solely due to its natural resources, but rather its superior human labour, technological innovation, thoughtful planning, and organisation.",
  "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": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "South China Morning Post",
        "title": "How China became the world’s gold superpower",
        "url": "https://urgent.news/2026/10/01/how-china-became-the-worlds-gold-superpower",
        "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."
}