Key Takeaways:
- China proposed new gold import rules limiting PBOC oversight, per Xinhua
- Gold imports surged 76% year-to-date to 692 tonnes through May
- SGE withdrawals fell to 63.5 tonnes in May, the lowest since February 2020
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China proposes new gold trade rules as imports surge 76% to 692t
China is overhauling gold import and export rules to limit the central bank's oversight of cross-border bullion movements, a regulatory shift that comes as the world's top gold buyer imported 163 tonnes in May.
China proposed overhauling gold import and export rules to limit the central bank's role in cross-border movements, a shift that comes as the world's top bullion buyer imported 163 tonnes in May.
"The revisions aim to streamline administration and facilitate trade while strengthening customs oversight," the People's Bank of China said in a statement published by Xinhua on Sunday.
China imported about 163 tonnes of gold in May, the highest monthly total since March 2024, according to customs data. Year-to-date imports through May reached roughly 692 tonnes, a 76% increase from the same period in 2025. The surge was driven by strong demand for gold bars and bullion accumulation plans, said Song Jiangzhen, a researcher at the Guangzhou Southern Gold Market Academy.
The proposed changes could reshape how the world's largest gold consumer manages bullion flows, with implications for global prices and trade patterns. The draft eliminates a provision requiring the PBOC and customs to jointly set rules for individuals carrying gold across borders, though customs supervision will remain. The revisions also formalize measures that have proven effective in practice and strengthen penalties for violations, according to the central bank.
What the new rules change
Under the current framework, the PBOC and the General Administration of Customs jointly formulate rules for individuals carrying or mailing gold and gold products across the border. The draft removes that joint requirement, leaving customs as the sole supervisory authority for such movements. The PBOC said the amendments were designed to update the regulatory framework in line with evolving economic conditions and legal requirements.
The revisions also aim to improve convenience for businesses and the public by formalizing measures that have proven effective in practice, the central bank said. In addition, the draft would strengthen ex-ante supervision by clarifying the scope of customs oversight, enhancing supervision of foreign trade companies acting as agents, and improving the penalty framework for violations.
Cooling demand signals
Despite the strong import numbers, China's physical gold market has shown signs of cooling. Gold withdrawals from the Shanghai Gold Exchange totaled only 63.5 tonnes in May, the lowest level since February 2020 during the first wave of the Covid-19 outbreak and roughly half of March's total. Gold exchange-traded funds in China also saw combined net outflows exceeding 10 billion yuan ($1.48 billion) over the past month as of June 3, according to Gelonghui Finance.
The domestic gold price premium, which had encouraged imports in prior months, has narrowed. The lower gold price may help boost restocking activities, though jewellers may stay on the sidelines if the price weakness accelerates, said Ray Jia, research head for China at the World Gold Council.
The proposed regulatory overhaul signals China's intent to modernize its gold trade framework even as domestic demand dynamics shift. The exact impact on global bullion flows will depend on the final details of the new regime, which have not yet been disclosed.
This article is for informational purposes only and does not constitute investment advice.
