China Gold Body Rejects US Sanctions on 3 Miners, Pledges Countermeasures

China's gold industry association rejected US sanctions on three domestic miners and the London Bullion Market Association's suspension of their Good Delivery status Wednesday, calling the moves baseless and pledging coordinated countermeasures.

"There is no basis for the relevant allegations," the China Gold Association said in a statement, adding that the US restrictions, based on a presumption of guilt, are essentially an attempt to politicize human rights issues and pursue trade protectionism.

The US Department of Homeland Security added 43 Chinese entities to the Uyghur Forced Labor Prevention Act Entity List on July 31, effective August 3, including Shandong Gold Mining Co, Shandong Gold Smelting Co and Xinjiang Jinchuan Mining Industry Co. The LBMA suspended Shandong Gold Smelting Co from both its Gold and Silver Good Delivery Lists effective August 5, pending completion of its Incident Review Process.

The dispute threatens to disrupt global gold supply chains at a time when China is the world's largest gold producer. The association said China's gold industry chain is complete with sufficient resilience to withstand external risks, and it will unite industry forces to coordinate rights protection responses and report developments to competent authorities.

The association's statement follows China's Ministry of Commerce announcing countermeasures against six US entities on August 5 for what it said was assisting and supporting illegal US sanctions related to Xinjiang. MOFCOM had earlier called the US action "typical economic coercion," saying Washington used "human rights" and "forced labor" as pretexts to impose unilateral sanctions under its domestic law.

The LBMA's Good Delivery system serves as an important foundation for the circulation of gold in the global market, the association said. By accepting false information and suspending companies' qualifications without conducting sufficient fact-checking, the LBMA has not only harmed the legitimate rights and interests of Chinese gold companies but also undermined the stable operation of the global gold market.

Market Reaction and Industry Resilience

Shares of Zijin Gold International (02259.HK) surged more than 4 percent after Bank of America Securities raised its target price to HK$150, even as the sector faced the US restrictions. Zijin Gold reported first-half 2026 net profit of US$1.451 billion, up 179 percent year on year, and declared an interim dividend of HK$1.5 per share.

The association said it will continue to strengthen industry compliance and self-discipline, improve traceability systems and advance green mine development, while proactively engaging in professional dialogue with international counterparts to promote objective and fair assessments of China's gold industry.

The UFLPA, signed into law in December 2021, presumes that goods produced in Xinjiang involve forced labor unless proven otherwise. This marks the first time gold companies have been added to the entity list, extending the law's reach from cotton and tomato products to the precious metals sector. The US government previously introduced bans on cotton and tomato products from Xinjiang, enabling Customs and Border Protection to issue withhold release orders at ports of entry.

The association urged the US to stop imposing sanctions and suppression on the basis of false information and called on the LBMA to uphold a neutral and professional position, respect objective facts and correct its inappropriate decision. The global gold industry should uphold the principle of mutual benefit and win-win cooperation to maintain a fair and orderly international gold market, it said.

This article is for informational purposes only and does not constitute investment advice.