As part of its long-term economic strategy, China is rapidly boosting its gold reserves. In August, the People’s Bank of China added to its seven consecutive months of gold purchases. This move has lifted China’s total gold holdings to $253.8 billion, representing 7.6% of its total foreign exchange reserves, according to reports.
So far in 2025, the central bank has bought 21 tonnes of gold, adding to 44 tonnes in 2024 and a massive 225 tonnes in 2023. At present, China officially holds 2,300.4 tonnes of gold. Its immediate target is to reach 5,000 tonnes, a goal first suggested in 2009 by Hou Huimin, former Deputy Secretary General of the China Gold Association. If achieved, this would make China the second-largest holder of gold reserves after the United States.
Globally, the US leads the gold market with 8,133.5 tonnes, a figure that has remained largely unchanged for 25 years. Germany follows with 3,350 tonnes, followed by Italy (2,452 tonnes), France (2,437 tonnes), and Russia (2,330 tonnes). Just behind Russia, China holds 1,040 tonnes, ahead of Switzerland.
Similarly, India is a significant player, ranking just behind Switzerland with 880 tonnes, accounting for 13% of its reserves. As well as these major holders, Japan has 846 tonnes, Turkey has 637 tonnes, the Netherlands has 613 tonnes, and Poland has 515 tonnes. Between 2023 and 2025, Poland alone purchased 287 tonnes of gold, making it the most aggressive gold buyer since 2023.
For China to eventually surpass the US as the world’s largest economy, it will need to hold more than 8,000 tonnes of gold.
Shivam Verma is a journalist with over three years of experience in digital newsrooms. He currently works at NewsX, having previously worked for Firstpost and DNA India. A postgraduate diploma holder in Integrated Journalism from the Asian College of Journalism, Chennai, Shivam focuses on international affairs, diplomacy, defence, and politics. Beyond the newsroom, he is passionate about football—both playing and watching—and enjoys travelling to explore new places and cuisines.
