Key facts
- China has become the world's gold superpower.
- China's own gold deposits were historically scarce.
- In 1975, China produced a meager 13.8 metric tons of gold annually.
China's ascent to becoming the world's gold superpower is presented as a key indicator of its broader industrial success. Historically, despite a long-standing reverence for gold, China's own limited domestic deposits prevented it from establishing a gold-based economy.
As China embarked on its economic modernization in 1975, it sought gold to finance reforms and bolster its foreign reserves. At that time, its domestic production was minimal, yielding only 13.8 metric tons annually, a stark contrast to leading producers like South Africa.
Following Mao Zedong's death in 1976, Deng Xiaoping initiated market reforms that reshaped the economy. These reforms included granting peasants rights to farm their own land and opening the door to foreign investment after the re-establishment of diplomatic ties with the US in 1979. This period saw significant economic growth, with China becoming the "workshop of the world" and joining the World Trade Organization in 2001, which further boosted its export capabilities.
These economic transformations have lifted hundreds of millions of people out of poverty, though they have also deepened inequality within the country. China's economic power now rivals the United States in many areas, with initiatives like the Belt and Road aiming to establish economic ties and control critical resources globally.