China Plans New Gold Import Rules as Bullion Imports Surge

China Proposes Major Gold Import Reforms as Bullion Imports Hit Two-Year High Despite Cooling Domestic Demand.

China is preparing a significant overhaul of its gold import and export regulatory framework even as the country recorded its strongest monthly gold imports in more than two years. The proposed reforms are aimed at simplifying cross-border trade, strengthening customs oversight, and modernizing regulations governing the movement of gold and gold products.

The development comes at a time when China, the world’s largest consumer of gold, has witnessed a sharp rebound in bullion imports following a moderation in domestic prices. However, recent market indicators also suggest that investor enthusiasm and physical demand have begun to cool after an exceptionally strong start to 2026.

Buy Now: Customs Duty Judgements E-Compilation – May 2026

China Plans Comprehensive Overhaul of Gold Trade Rules

According to a report published by Xinhua, Chinese authorities, led by the People’s Bank of China (PBOC) and the General Administration of Customs, have released draft amendments to the country’s existing regulations governing the import and export of gold and gold products.

The proposed framework seeks to simplify administrative procedures, facilitate legitimate trade, and improve the management of gold carried across China’s borders by individuals.

Officials stated that the revisions have been drafted to align the regulatory framework with evolving economic conditions, updated legal requirements, and recent policy developments.

Customs to Take Primary Responsibility

One of the most notable changes proposed in the draft regulations is the transfer of greater regulatory responsibility to customs authorities.

Under the existing framework, the PBOC and customs authorities jointly formulate rules governing individuals carrying or mailing gold across China’s borders. The proposed amendments remove this requirement.

Instead, cross-border transportation of gold and gold products would remain subject to customs supervision, with no explicit reference to continued regulatory involvement by the central bank.

The move is viewed as an effort to streamline governance while clearly defining the responsibilities of customs authorities in supervising cross-border gold movements.

Stronger Oversight and Simplified Compliance

Besides simplifying procedures, the proposed regulations also seek to strengthen preventive supervision.

The draft introduces measures to:

Clearly define the scope of customs supervision.
Enhance monitoring of foreign trade companies acting as import-export agents.
Improve the legal framework governing violations and penalties.
Incorporate administrative practices that have already proven effective in facilitating trade.

Authorities believe these changes will reduce procedural complexity for businesses while improving regulatory enforcement.

Gold Imports Surge to Highest Level Since March 2024

The regulatory overhaul coincides with a sharp increase in China’s bullion imports.

According to the latest customs data, China imported approximately 163 tonnes of gold in May 2026, marking the highest monthly import volume since March 2024.

The increase reflects robust demand after domestic gold prices retreated nearly 25% from their record highs reached earlier in 2026, making imports more attractive.

Between January and May 2026, China’s cumulative gold imports reached roughly 692 tonnes, representing a 76% increase compared with the corresponding period in 2025.

Investment Demand Continues to Support Imports

Market analysts attribute the surge primarily to continued investment demand.

Song Jiangzhen, a researcher at the Guangzhou Southern Gold Market Academy, observed that purchases of gold bars and growing participation in incremental bullion accumulation plans remained major contributors to import growth.

The rebound also reflects increased buying activity after domestic premiums encouraged importers to replenish inventories.

World Gold Council: Domestic Premiums Drove Import Growth

The World Gold Council (WGC) noted that China’s net gold imports remained exceptionally strong in April before accelerating further in May.

According to Ray Jia, Head of Research for China at the WGC, China’s net gold imports reached 157 tonnes in April, increasing 10% month-on-month and 40% year-on-year, making it the strongest month since March 2024.

The report identified sustained domestic price premiums as the primary factor supporting elevated import volumes.

Jewellery Sector May Stabilise

Looking ahead, the World Gold Council believes seasonal trends could provide stability to China’s jewellery sector.

Industry participants are expected to replenish inventories after subdued buying earlier in the year. Lower gold prices may encourage additional restocking, although jewellers could remain cautious if prices continue to decline sharply.

On the investment side, however, moderating price momentum may reduce demand for bullion purchases.

Signs of Cooling Investor Sentiment

Despite record import figures, several indicators suggest China’s gold market has started losing momentum.

A report by Gelonghui Finance noted that growing market uncertainty has triggered significant outflows from domestic gold exchange-traded funds (ETFs).

As of early June, 14 Chinese gold ETFs recorded combined net outflows exceeding RMB 10 billion (approximately US$1.48 billion) over the previous month.

The report observed that the previously dominant investment strategy of buying gold during price corrections has become increasingly divided amid heightened market volatility.

Gold Mining Stocks Also Witness Decline

The cooling sentiment extended to equity markets as Hong Kong-listed gold mining companies experienced broad-based declines.

Several major mining companies, including China National Gold International Resources, Zijin Mining, Shandong Gold, Zhaojin Mining, Chifeng Gold, Lingbao Gold, China Silver Group, Zhufeng Gold, and Tongguan Gold, registered notable losses as investors reassessed expectations for gold prices.

The simultaneous decline across the sector was viewed as unusual by market participants.

Physical Gold Demand Weakens

China’s physical gold market has also slowed considerably compared to the exceptionally strong demand witnessed during the first quarter of 2026, when gold prices repeatedly reached fresh record highs.

Data released by the Shanghai Gold Exchange showed that gold withdrawals in May totaled only 63.5 tonnes, the lowest monthly level since February 2020, when economic activity was disrupted during the initial phase of the COVID-19 pandemic.

The withdrawal figure was also nearly 50% lower than the volumes recorded in March 2026, highlighting a significant moderation in physical demand.

Outlook

China‘s proposed overhaul of gold trade regulations signals a broader effort to modernize the country’s precious metals regulatory framework while facilitating legitimate trade and strengthening customs oversight.

Although bullion imports remain exceptionally strong, recent ETF outflows, weaker physical demand, and declining gold mining stocks indicate that the domestic gold market may be entering a period of consolidation after the extraordinary rally witnessed earlier this year. Market participants will now closely watch both the regulatory reforms and evolving consumer demand to assess the next phase of China’s gold market.