Sohu news reported on November 28 that China is reducing its holdings of U.S. debt on a large scale and has begun to import a large amount of gold, including imports from Russia.
Earlier, Russian Business Daily (RBD) reported that Russia delivered 2.16 tons of gold to China worth $124.6 million. It is the highest recorded amount since 2016.
In the first 10 months of this year, imports of gold in unprocessed or semi-processed forms from Russia to China amounted to 5.72 tons, almost doubling the same period last year.
Nikkei China reported that China sold U.S. Treasuries after Russia invaded Ukraine in February. Particularly, China sold $121.2 billion U.S. Treasuries, equivalent to 2,200 tons of gold by the end of September.
Nikkei China also commented that some of the funds from that sale were likely used to buy gold from Russia.
According to Russia’s Federal Customs Service, Russia exported over 300 tons of gold. China’s Customs reported that China only purchased about 4 tons at that time.
Despite the hikes in exported gold to China, Russia remains a minor supplier in Chinese markets, which are dominated by suppliers from Switzerland and Canada. Their exported value recorded $26.5 billion and $9.7 billion between January and October 2022.
Sergey Kashuba, chairman of the Union of Gold Producers of Russia said that increasing gold exports from Russia to China was due to COVID restrictions and closed borders. Russian companies tended to stockpile a lot of gold because of lockdowns.Nikkei Asia quoted analysts saying that China and some other nations must be hurrying to reduce their dependence on the dollar given that the West has imposed monetary sanctions on Russia.