https://thenewamerican.com/china-stocks-up-on-bullion-to-prepare-for-possible-western-sanctions/
SINGAPORE — China increased its gold reserves for a fifth consecutive month as Beijing readies itself for possible future Western-led sanctions, according to a New York-based newspaper, quoting industry experts.
Chinese scholar and finance author Sun Xiaoji claimed that China’s Central Bank is actively boosting its stockpiles of bullion for fear it could be eventually excluded from the global U.S. dollar payment system.
“Domestically, the Chinese Communist Party (CCP) advertises that it is ‘proactively challenging the United States and de-dollarizing,’ but the real reason is that it knows it will be sanctioned by the United States sooner or later. Therefore it is looking for an alternative to the US dollar, and the only alternative is gold,” Sun posited.
Moreover, Sun referred to the ongoing drive for de-dollarization by the BRICS group, of which China is a member, apart from Brazil, Russia, India, and South Africa. The analyst explained that de-dollarization is happening as the recent trend of Western-dominated globalization is coming to a stop, and that the world is about to enter into an era of regional development and inter-regional clashes.
Furthermore, U.K.-based financial consultant Fang Qi opined that he believes China’s Central Bank has decreased its holdings of U.S. bonds and increased Chinese gold reserves to reduce volatility.
These aforementioned comments came shortly after the People’s Bank of China bulked up 18 tons of bullion after a pause between September 2019 and October 2022. China’s total holdings of bullion presently rests at about 2,068 tons, after increasing by about 102 tons in the four months before March.