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Chinese Gold Imports Surge In September, YTD Total Surpasses Official Indian Holdings

Tyler Durden's picture


Anyone who may have been concerned by the slowdown in Chinese gold imports in August, when the country imported "only" 53.5 tons of gold from Hong Kong (down from 75.8 in July), can breathe a sigh of relief. According to the Hong Kong Census Bureau, in September Chinese gross imports soared by 30% reverting to the long-term trendline of 65 tons in gross imports per month, and rising to a total of 69.7 tons. Net imports were 40% less, although that excludes organic Chinese gold mining and recirculation, which is why for all intents and purposes the gross number is the apples to apples one. And using that, Year-To-Date China has now imported a whopping 582 tons of gold, more than the official holdings of India at 558 tons, and which through November has certainly surpassed the holdings of the Netherlands, and make China's gross imports in just 2012 nominally the equivalent of Top 10 largest sovereign holder of gold.

This way at least we know where China is recycling all that vast trade surplus, which incidentally in October just printed, goalseeked or not, at the highest level - $32 billion - since January of 2009. Too bad China no longer recycles all those excess reserves into US Treasury paper (as we showed previously here).

YTD China gross imports from Hong Kong:

Where does this put China:

And in historical perspective: the recent surge in demand for gold is quite unmistakeable:


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Sun, 11/11/2012 - 20:26 | 2971110 DCCynic
DCCynic's picture

I'd love to know how much we really have.  Perhaps not knowing is best.

Sun, 11/11/2012 - 20:27 | 2971112 lolmao500
lolmao500's picture

US gold reserves are like the Schrodinger cat.

Sun, 11/11/2012 - 20:41 | 2971142 Ness.
Ness.'s picture


Then we go boom.


Sun, 11/11/2012 - 22:39 | 2971443 markmotive
markmotive's picture

China is starting to recover...inflation is falling giving them room for their fiscal/monetary magic tricks.

Couple that with gold purchases and America's policy and we could see another pop in the next 12mths.

Peter Schiff on gold and the dollar:

Mon, 11/12/2012 - 01:31 | 2971759 DoChenRollingBearing
DoChenRollingBearing's picture

FOFOA writes his new piece on MONEY (it's really just credit)...

Mon, 11/12/2012 - 06:14 | 2971919 fiftybagger
fiftybagger's picture

"Since I'm writing at length here, I thought I'd start out with a kind of abstract for those who can't stand long posts."

Great.  Now the guy is going to blabber on about blabbering on.  Get to the freakin' point.  NM, it's FOFOA afterall...

Sun, 11/11/2012 - 20:51 | 2971146 UnpatrioticHoarder
UnpatrioticHoarder's picture

Until China is confident in having larger (non-imaginary) reserves than Germany and the US, the policy will be BTFD. After that, BOOM.

Expressed in mathematical terms US gold reserves are say 1000 Tonnes + 7133i tonnes

Germany is something like 1000 tonnes + 2395i tonnes

China is something like 2000 tonnes

IMF reserves are all imaginary numbers.

Multiplying by the complex gold price ($10,000 - $8,300i) /oz, you can see the Western financial system is rooted.

Mon, 11/12/2012 - 03:52 | 2971867 merizobeach
merizobeach's picture

Right.  Does this put Timmy Geithner in line to win nobels in economics and math for pioneering "quantum gold"?  Or does he have to share with Dimon and Corzine for their calculations of "quantum silver"?

Sun, 11/11/2012 - 20:40 | 2971138 ACP
ACP's picture

You know, the saddest thing about that is most Americans don't know its importance and therefore wouldn't give a shit anyway.

Sun, 11/11/2012 - 20:53 | 2971177 willwork4food
willwork4food's picture

who gives a shit?

/s :)

Sun, 11/11/2012 - 22:17 | 2971364's picture

You each make a valid point.

Sun, 11/11/2012 - 20:56 | 2971187 willwork4food
willwork4food's picture

Unless China is outright lying,  vying for future reserve currency status.

Sun, 11/11/2012 - 22:20 | 2971374's picture

Always a possibility but why would they hold onto dollars?

Sun, 11/11/2012 - 22:33 | 2971423 NewThor
NewThor's picture

$1 dollar bills have those cool Pyramids with eyes on the back.

Have you seen them?

I think they are good luck or something.

Sun, 11/11/2012 - 23:19 | 2971555's picture

Maybe it's a Pink Floyd thing. The Fed is cooler than I thought.

Sun, 11/11/2012 - 21:39 | 2971275 philipat
philipat's picture

China must be very grateful to the Fed for capping the price of Gold whilst it accumulates Gold instead of more Green Fiat. These data do NOT even include domestic production in China. I'm sure China will return the favour in a few years after it's economic transition is complete and havig by then amassed perhaps 5K, or even 10K tons of Gold, by re-launching the RMB as a fully convertible currency backed by Gold. Petro dollars anyone??

Sun, 11/11/2012 - 21:48 | 2971296 a growing concern
a growing concern's picture

That would certainly seem to be the smart play by them.  Use all those FRNs we so readily send their way to build up their reserves, and, when the time is ready, thrust their dagger straight into the heart of the US financial system and consign us to the dustbin of history once and for all.  That's what I'd do if I was them.  So we'd better keep stackin'.

Sun, 11/11/2012 - 22:21 | 2971378's picture

Like DeGaulle, but far more inscrutable.

Mon, 11/12/2012 - 03:57 | 2971870 merizobeach
merizobeach's picture

As I recall, the gov of China buys the country's domestic production at the RMB equivalent of USD1000/oz.  Mine it or don't, but that's the price, so I heard.

Mon, 11/12/2012 - 06:19 | 2971922 Urban Redneck
Urban Redneck's picture

The Chinese aren't stupid enough to seek a convertible reserve currency backed by their own gold holdings, when no on else's currency is convertible.  Triffen presents a paradox, not a dilema to which there is a solution.

Mon, 11/12/2012 - 12:08 | 2972621 juliawong
juliawong's picture

I certainly hope you are right. But, I hear the newly phased in management are talking about "dramatic" "faster than most thought possible" change in the financial system and/or currency policy. I fear it would be one of those "progressive" changes like floating your currency in the international market.  They already have set up a RMB futures market, and greatly enlarged the quota/scale of foreign investment (i.e. USD) into the equities market.

Mon, 11/12/2012 - 09:38 | 2972086 LawsofPhysics
LawsofPhysics's picture

Having the RMB fully convertiable will mean an end to printing.  Don't be stupid, China is printing like mad and they do not want to stop (yet).  Hold your own gold if you are so concerned,  Duh!

Sun, 11/11/2012 - 22:02 | 2971327 San Diego Gold Bug
San Diego Gold Bug's picture

I have more Gold than the US/Fed does!

SD Gold Bug 50 oz's

United States/Fed 0 oz's

PS  In the global financial game, China is plaing Chess while the US goverment is playing Checkers!!!

Mon, 11/12/2012 - 01:35 | 2971767 DoChenRollingBearing
DoChenRollingBearing's picture

Then you are doing MUCH better than the average American!

+ $55,000

Here's my take on Americans owning physical gold.  Very roughly there are some 6 billion oz of gold, making the ratio of gold oz per capita (worldwide) about 1:1.  But, Americans are richer, by far, than the world average, let's 10 times so (I am just painting a Thought Experiment, OK?).  So, by DoChen's infantile reasoning, each American should own 10 oz of gold.  Each family (call it three people) should then have 30 oz.

Bravo: San Diego Gold Bug!

Mon, 11/12/2012 - 02:02 | 2971790 akak
akak's picture


Very roughly there are some 6 billion oz of gold, making the ratio of gold oz per capita (worldwide) about 1:1.

DoChen, it may interest you (and others) to know that that approximately 1:1 ratio of gold oz. per capita has held for hundreds of years, at least --- giving the lie to the claims of the idiotic naysayers that there is "not enough gold" to re-establish the gold standard (whatever one thinks of the advisability of doing that); if there was "enough" to do so in the past, which there was, there certainly is just as much, proportionately, today.

Mon, 11/12/2012 - 07:35 | 2971952 Ctrl_P
Ctrl_P's picture

I had a think about this a while ago.

While I support your point of  "giving the lie to the claims of the idiotic naysayers that there is "not enough gold" to re-establish the gold standard"

Some of the various accounting processes suggest closer to 5.5 billion ounces of gold above the surface of the planet. And there is now a tickover 7 billion people scratching a iving here. Throughout history we have increased this gold store at about 2 percent a year. We have also been increasing the population at, coincidently, 2 percent per year. World GDP? I guess it might be close to 2 percent as well. Well until the industrial revolution and then we went a little out of balance. If I use my trusty calculator for the ratio, it comes up with 0.78 ounces of gold per person, that is quite a bit less than the 1:1 ratio in history. Possibly one reason that the feeling of 'not enough gold' or the collary of 'too many people' is gaining traction.

I was intereseted to find out what the generally accepted methd of reducing the population by nearly 1.5 billion people would be. My pick is the first of the 4 horsemen of the apocalypse.  Or do we wait for the asteroid lottery to deliver the extra 2 billion ounces the we need?

Mon, 11/12/2012 - 06:17 | 2971921 lakecity55
lakecity55's picture

I have a knowledgeable numismatist advisor who is going long on silver although he does not turn down gold.

He thinks silver will go up faster and is easier to acquire at today's prices.

I just ordered another Silvertowne bar.

Keep stackin.

I got out of all equities xcept some silver miners.

Mon, 11/12/2012 - 08:41 | 2972000 new game
new game's picture

some quick calculations as follows-

S and W mod 19 and 66 up 300 percent

since gold was 600/oz

same with all these handy devices; mod 10, 586. 686 ect.

same for propellant and delivery metal.

Therefor I suggest a combo of G, S. S & W and Lead...

PS, one insures ownership of the other and ultimate protection of civil liberties-so fucking old school.

Sun, 11/11/2012 - 20:26 | 2971111 lolmao500
lolmao500's picture

While Xi Jinping will take over the Chinese military this week instead of around early 2014...

Exclusive: Hu Jintao set to step down as military chief

Outgoing leader decides to retire and clear way for Xi Jinping, breaking from the unpopular precedent set by his predecessor Jiang Zemin

Xi Jinping: Hawk, dove or in between?

"His few public utterances put him closest to the hawkish end of the spectrum," argued columnist Philip Stephens in the Financial Times last month.

A year later, when Beijing marked the 60th anniversary of China's entry into the Korean War, he called it "a great and just war for safeguarding peace and resisting aggression". North Korea had invaded South Korea but his comments turned it around, angering Seoul.


Japan better get ready...

Sun, 11/11/2012 - 20:28 | 2971113 JustPrintMoreDuh
JustPrintMoreDuh's picture

It's a good thing that China's government is not hiding how much gold its been acquiring ... otherwise there might be a need for concern. 

Sun, 11/11/2012 - 20:29 | 2971114 lolmao500
lolmao500's picture

While Japan..

Japanese Economy Contracts at Fastest Pace Since Earthquake

Time for QE... what is it now... QE 15??

Sun, 11/11/2012 - 20:37 | 2971129 ziggy59
ziggy59's picture

QE..EQ...same result...

Sun, 11/11/2012 - 20:32 | 2971122 surf0766
surf0766's picture


Sun, 11/11/2012 - 20:36 | 2971126 HurricaneSeason
HurricaneSeason's picture

Evil barbarians, we begin bombing in 5 minutes.

Sun, 11/11/2012 - 20:36 | 2971127 ziggy59
ziggy59's picture

..and they're not letting the deceptive BSing west hold it for them?

They must know something or can't be threatened into "trusting" and entrusting some lying POS central banker.

Maybe China should offer the other smaller countries that supposedly have their gold dispersed like a fart in a hurricane, storage for their hard assets

Sun, 11/11/2012 - 20:38 | 2971132 The Continental
The Continental's picture

China knows that gold is the foundation of a world reserve currency. The dollar has been bluffing the world since 1972. China will call the dollar's bluff - it is a matter of time. Otherwise, China's feverish accumulation of gold would be pointless. Americans and other westerners take note: if you don't hold the bulk of your liquid wealth in physical gold (and silver) you will at best see your standard of living decline inexorably and at worst you will be financially wiped out.

Sun, 11/11/2012 - 20:49 | 2971157 akak
akak's picture


if you don't hold the bulk of your liquid wealth in physical gold (and silver) you will at best see your standard of living decline inexorably and at worst you will be financially wiped out.

Continental, although I agree with your comments here, I feel compelled to point out that unless one is living purely on savings (all held in gold and/or silver), then everyone's standard of living is going to inexorably decline in the years ahead, as their incomes fail to keep pace with rising costs due to fiat currency depreciation.  Holding gold and silver will only ameliorate that decline, but not entirely shield one from it.

Sun, 11/11/2012 - 21:15 | 2971229 tmosley
tmosley's picture

Depends on how much gold and silver are held.  Those with a large portion of their savings in silver will likely see a major increase in their purchasing power far in excess of any lost wages.  Probably the same with gold, just to a lesser extent.

Sun, 11/11/2012 - 21:31 | 2971265 akak
akak's picture

Quite possibly, tmosley --- I guess I was arguing from the conservative case in which gold and silver more or less hold their (current) value in the face of "inflation" (fiat currency depreciation).

Sun, 11/11/2012 - 21:34 | 2971269 fonzannoon
fonzannoon's picture

Thats the big question Akak. I wonder about that a lot.

Mon, 11/12/2012 - 00:10 | 2971643 centipede
centipede's picture

Not quite true. Prices of gold and silver rise faster than CPI. The reason is that nominal GDP and/or monetary base rise much faster and gold/silver relative "depreciation" by increased mine production is very slow. Based on monetary base the gold price should be about 2500 comparing to the values in 1914 (beginning of the legalized counterfeiting). Based on CPI barely 500.

Mon, 11/12/2012 - 01:04 | 2971660 Al Gorerhythm
Al Gorerhythm's picture

Now, factor in a complete loss of confidence calculate the probabilities of it happening, choose a timeframe........ kaboom.

"Gold today should be $4606." Paul Tustain. (6 month old calculation)


Mon, 11/12/2012 - 10:20 | 2972223 QQQBall
QQQBall's picture

Bullocks. Gold has gone up 500% since i started buying... My cost of living has not gone up that much in the past 10+ years.

Mon, 11/12/2012 - 10:45 | 2972295 earnulf
earnulf's picture

Of course when one compares the value of physical with the value of fiat and the potential directions of either given a loss of Reserve Currency Status, then the physical wins hands down.    A silver dime or a wheelbarrow full of fiat (if they could find one nowdays) for a loaf of bread?    Bet the dime would even buy the wheelbarrow....

Sun, 11/11/2012 - 20:38 | 2971133 tony bonn
tony bonn's picture

to repeat an adage i have not uttered in many a moon, he who owns the gold makes the rules....anyone who thinks that gold is not money or has artificial value is a fucktard - unless he believes that its value is artificially low....

jim willie reports 6000 tons left london for peking and other eastern destinations earlier this year, a further sign of the collapse of the western banking feels like the sacking of rome in 451 or even earlier forays into the once sacred city....

in any event, all of the blather about barbarous relics is for public consumption by the legendarily fucktarded american....most of fort knox's gold has found its way into the personal coffers of banksters and plutocrats on wall street....barbarous indeed....

it is very very unlikely that any german gold went to china this year - it is long gone.

Sun, 11/11/2012 - 22:27 | 2971397's picture

The good news is that skeletal excavations have shown that those who lived after the fall of Rome lived longer and healthier lives than those who lived in the waning days of empire. Ironically, that means that Americans will be less fat (in a good way) than they were before. And there won't be that annoying "do you like Romney or Obama" thing going on.

Mon, 11/12/2012 - 06:09 | 2971915 lakecity55
lakecity55's picture

So, someone needs to call Bundesbank and tell them to query China for a look-see at their stuff?

Sun, 11/11/2012 - 20:38 | 2971134 fasTTcar
fasTTcar's picture

Of course they are.

What else are they going to pay Iran with for its oil?

Sun, 11/11/2012 - 20:39 | 2971135 JustObserving
JustObserving's picture

Indian consumers hold at least 18,000 tons of gold.  The official Indian holdings are puny.

Sun, 11/11/2012 - 20:43 | 2971148 cossack55
cossack55's picture

you forgot the word "temporarily".

Sun, 11/11/2012 - 20:44 | 2971154 Tyler Durden
Tyler Durden's picture

40 years of average inflation at ~8% will do that... As to the reason why official Indian inflation readings are actually accurate, here is the answer:

Sun, 11/11/2012 - 21:00 | 2971201 spartan117
spartan117's picture

I can see why the US population is so obese.  We have it easy.  At least for now.

Sun, 11/11/2012 - 22:29 | 2971406's picture

If obese is so easy then why are there so many Hoverounds, "At no cost to me!" flying off the shelves?

Sun, 11/11/2012 - 20:50 | 2971163 akak
akak's picture

True, but according to Jon Nadler and the World Gold Council, the vast bulk of that Indian gold is held as jewelry and is therefore nothing but baubles to be displayed on one's wedding day (the fact that gold jewelry might ALSO be, and is, investment gold never apparently having crossed their dishonest and disingenuous minds).

Sun, 11/11/2012 - 21:20 | 2971179 JustObserving
JustObserving's picture

The elites in the cities have lots of gold and silver bullion as coins, bars and bricks.  The middle class may have most of its gold as jewelry but they will also have a few gold coins.

India imported 963.1 metric tons of gold in 2010 and 878 tons in 2011. Official holdings are 557.7 tons.

Now that there is duty on gold imports, gold smuggling is back.  So India's gold imports cannot be easily estimated.  From tomorrow's Indian Express:


High import duty brings gold smuggling back


The recent seizure of gold at the Mumbai airport by the customs department has confirmed suspicions that smuggling of the metal has shot up through channels that are a far cry from the site of dhows and speed boats that lurked the shore lines of Gujarat and Maharashtra till the early nineties.

Gold smuggling has become attractive again after the government this year raised the duty on its imports to rein in a widening current account deficit (CAD). In Budget 2012-13 the duty rates on all types of gold imports were doubled.



Sun, 11/11/2012 - 22:31 | 2971413's picture

I'd love to see a citation of that. Not playin'.

Sun, 11/11/2012 - 20:48 | 2971162 Insideher Trading
Insideher Trading's picture

It's got a long rock wall with a big oak tree at the north end. It's like something out of a Robert Frost poem. It's where I asked my wife to marry me. We went there for a picnic and made love under that oak and I asked and she said yes. Promise me, Red. If you ever get out... find that spot. At the base of that wall, you'll find a rock that has no earthly business in a Maine hayfield. Piece of black, volcanic glass. There's something buried under it I want you to have.

-Robert Rubin to Tim Geithner

Sun, 11/11/2012 - 20:50 | 2971172 lunaticfringe
lunaticfringe's picture

mmmm...let's see...didn't do it. Lawyer fucked me.

Sun, 11/11/2012 - 22:32 | 2971420's picture


Sun, 11/11/2012 - 20:48 | 2971164 Yen Cross
Yen Cross's picture

 Scary shit Tyler. As China continues to build/project, their military strength, PBoC currency will also have more perceived purchasing power .

Sun, 11/11/2012 - 22:34 | 2971426's picture

The Fed is a bear and the PBoC is a wolverine. If they kill each other in a fight then maybe I'll be OK.

Sun, 11/11/2012 - 21:00 | 2971196 Buckaroo Banzai
Buckaroo Banzai's picture

Huángjin, mugou!!!!

Sun, 11/11/2012 - 21:00 | 2971198 kalasend
kalasend's picture

Average Chinese mind: QE3 -> buy gold.

Short-term result: less-than-optimal timing

What's new: nothing

ZH not putting China gold-hoard and hard-landing into perspective: still true

Mon, 11/12/2012 - 00:38 | 2971685 sablya
sablya's picture

Front-running the Chinese: priceless...

Mon, 11/12/2012 - 06:05 | 2971914 lakecity55
lakecity55's picture

One only wonders how much Ag they are collecting, since all we ever talk about are the Au holdings.

And, how about their other rare earth holdings?

Sun, 11/11/2012 - 21:34 | 2971270 Weyland_Yutani
Weyland_Yutani's picture

China is also the world's biggest producer of gold. They mine gold, they buy mining companies all over the world and they're importing a lot of gold.

The United States, on the other hand, is focusing on waging war and printing money...

Sun, 11/11/2012 - 22:35 | 2971429's picture

This is a replay of history. Hubris, hubris, hubris.

Mon, 11/12/2012 - 07:31 | 2971950 Winston Churchill
Winston Churchill's picture

Those are only Hong Kong imports.

How much is going in direct to China ?

Wouldn't be surprised if those reserves are closer to 3000 tons.

More than all the tungsten in Fort Knox.

Sun, 11/11/2012 - 21:36 | 2971276 nevket240
nevket240's picture

Apologies for the bandwith but,

DJ 'China's 2020 Blueprint To Ripple Through World' - Xinhua Report 12/11/2012 01:10AM AEST

BEIJING--After the Communist Party of China fleshed out the national goal of building a moderately prosperous society, questions of how the country will fare in 2020 and the impact on the world are very intriguing, Xinhua reporters Cheng Yunjie and Wang Zichen wrote in a special report published by the state-run news agency.

According to the report, labeled "Xinhua Insight,":

"Optimists envisage higher productivity and efficiency and broader democracy. Pessimists warn of domestic social ills which might take a serious toll on the world's second largest economy. Others, with reserved confidence, stay skeptical.

"Whatever kind of development trajectory China takes during the coming eight years, the ongoing national congress of the Party, with a new leadership to be installed next week, is a noteworthy event for its potential to change China and the world.

Potential and Benefits

"With the country's urbanization rate slightly exceeding 50% in 2011 compared with 39.1% in 2002, Chinese cities will see a constant influx of rural migrants in the next decade. This will generate demand for infrastructure and public utilities.

"China's growing appetite for energy and raw materials is expected to give a kick to the world's sluggish bulk commodity market. Currently, China is the world's biggest consumer of aluminum, copper, iron ore and cotton.

"Ungad Chadda, senior vice president of Toronto Stock Exchange, a world leader in mining and energy financing, takes China's 2020 blueprint as good news and is fascinated at the buildup of infrastructure under Chinese leaders.

"Other market-moving elements relating to China's 2020 goal, Chadda said, include the emerging middle class and Chinese people's growing consumption power.

"Morgan Stanley China has projected a golden decade for China's consumption. By 2020, the country's total retail sales will be equivalent to two-thirds of that of the United States and will account for up 12% of the world's aggregate, it said.

"For many Chinese people, the global market is no longer a vague concept.

"Ge Haoxin, a delegate to the Party congress from Fuyang City in east China's Anhui Province, believes that his seed-breeding business can contribute to the stabilization of the world farm produce market.

"Following bumper harvests for eight consecutive years, China has witnessed an unusual spike in grain imports this year, triggering market speculation on its growing dependence on the world market.

"From January to September, China's cereal imports (rice, wheat, corn and barley) more than doubled to 11.43 million tonnes, adding the total volume of farm produce imports to 83.6 billion U.S. dollars, up 24.5% from the same period last year.

"The deficit in China's farm produce trade rose to 38.26 billion U.S. dollars in the nine months, up 61.9% year on year, according to statistics from the Ministry of Agriculture.

"Restricted by its growing population and limited arable land resources, China must increase agricultural input to meet rising grain crop demand, industrial analysts say.

"China is at a disadvantage compared to other major grain producers, such as Australia, America and Brazil, in terms of per capita arable land and water resources, Ge said.

"If the Party honors its commitment to nurture agriculture with industrial proceeds and facilitate innovation on farming technologies, I think we can contribute more to domestic grain supply and the stability of the world farm produce market," said Ge. 

   Ambition and Challenges

"The CPC [Communist Party of China] has no intention of checking the country's economic ambitions. It will continue to view economic development as a major job.

"At the previous Party congress in 2007, the target of quadrupling the per-capita GDP [gross domestic product] of the year 2000 by 2020 was set. At the ongoing congress, the Party announced that it aims to double the 2010 GDP and per-capita income for both urban and rural residents by 2020.

"Delegate Zhang Yuyan, chief of the Institute of World Economics and Politics under the Chinese Academy of Social Sciences, said the 2020 blueprint shows the Party's down-to-earth spirit and principle of doing its own job well.

"Managing to improve people's living standards when China's productivity is low is a test facing the Party, he said.

"China ranked 77th out of 213 economies in 2011 with a per-capita gross national income of 4,940 U.S. dollars, according to World Bank data. The global average was 9,491 U.S. dollars last year.

"Over the past 30 years, China has reduced its poor population from 250 million to 26.88 million, becoming the first country to fulfill the United Nation's millennium goal of cutting the destitute population by half.

"Last year, the Chinese government raised the country's poverty threshold to 2,300 yuan, which increased the country's poor population to 100 million.

"'I see no chance for China to be a challenger of the global order after 2020. But with rising national strength, it can be more extensively integrated into the changing international community. It can contribute more to the world economy and boost the reform of existing international order to better protect the need of emerging economies,' said Zhang.

"If China succeeds in economic restructuring by relying more on domestic consumption and technological advancement, the rebalancing of world economy will be a less arduous task, he said.

"With labor cost rising, China cannot rest on its past glory as the world's 'manufacturing plant.' It should fuel its comparative advantages across the global value chain through higher productivity.

"Higher productivity and efficiency can also check China's energy and resources consumption, easing the pressure on environment left by an expanding world economy, Zhang said.

"By 2020, the country's carbon-dioxide emission per unit of gross domestic product will drop by 40% to 50% from the 2005 level.

"'From the blueprint outlined in the report delivered by Hu Jintao at the congress, people can see the perseverance of the CPC in pressing ahead with reforms to achieve the goal,' said Zhang.

"William Ratliff, a fellow at Stanford University's Hoover Institution, said China's incoming leadership needs to recall Deng Xiaoping's pragmatism to clarify conditions today that even Deng could not have fully imagined. They must also dictate new reforms to deal with those conditions.

"He said that would mean a broad restructuring of China's political and economic ideas and institutions. It will need to liberate people's minds to innovate, and expand options for policies dealing with whatever proves to be the domestic and global challenges of the future.

"If commands from the Party leaders decrease and a broader cross-section of individuals and groups are consulted in analyzing, formulating and implementing policies, those challenges will be met more productively, he said.

"China watcher Robert Kuhn from the United States said China must stage sustainable reform across a broad spectrum. Too rapid reform will cause disruption, he said.

"'Times of great change can be very unsettling and no one in China or the world would benefit from the country returning to chaos,' said William Ratliff.

"He said domestic liberation and increasingly constructive involvement in global political and economic affairs will enhance China's relations with the world.

"What may bring incoming Chinese leaders credit from the world involves a demonstration of sound environmental practices, the universality of such essentially Confucian ideas as harmonious existence, group orientation, public-spiritedness and distributive justice, he noted." 

(END) Dow Jones Newswires

November 11, 2012 09:10 ET (14:10 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Sun, 11/11/2012 - 21:58 | 2971318 Lloyd_Xmas
Lloyd_Xmas's picture

It's only the next $16 trillion we have to worry about.

Sun, 11/11/2012 - 22:23 | 2971386 HungryPorkChop
HungryPorkChop's picture

The debt clock has us at just over $121 tril.

That's $1 mil per person so pay up bithez!

Mon, 11/12/2012 - 03:17 | 2971849 slackrabbit
slackrabbit's picture

The cheque is in the mail!!! ;-)

Sun, 11/11/2012 - 22:22 | 2971381 johnlaw1971
johnlaw1971's picture

Ancient Chinese curse:
"may you live in interesting times"

Sun, 11/11/2012 - 22:36 | 2971433's picture

Ancient Chinese secret:

Sun, 11/11/2012 - 22:44 | 2971461 Bansters-in-my-...
Bansters-in-my- feces's picture

582 tons year to date....bitchez.... Ps....fuck you Bernanke.

Sun, 11/11/2012 - 22:45 | 2971467 Bansters-in-my-...
Bansters-in-my- feces's picture



Mon, 11/12/2012 - 06:03 | 2971910 lakecity55
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"We're #1 (in tugsten)! We're #1 (in tungsten)!

Sun, 11/11/2012 - 22:51 | 2971487 q99x2
q99x2's picture

I think the color of gold is pretty.

Mon, 11/12/2012 - 06:01 | 2971908 lakecity55
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Boy Howdy. Used to look great in my safe until a sinkhole appeared under the house and took it all.

Sun, 11/11/2012 - 23:08 | 2971529 Bron Suchecki
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Your chart is just looking at gross imports, not net (as there are exports out of China back to HK). Net imports were 46.6t

See (I'm sure Nick Laird will give you temporary access)

Mon, 11/12/2012 - 01:45 | 2971773 QE49er
QE49er's picture

What are they going to do with the tens of millions of uneducated single men? (Rhetorical question)

Mon, 11/12/2012 - 05:59 | 2971907 lakecity55
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They join the army and do the ancient greek thing.

"You the girl, this week, Hu!"

Mon, 11/12/2012 - 03:29 | 2971859 slackrabbit
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Just remember that China is not exporting the gold it is mining....


Mon, 11/12/2012 - 03:43 | 2971863 MiniCooper
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I am not at all convinced that this gold 'imported' into China is actually still in China.

There is huge capital flight from China as the elite move their assets offshore. No one leaves their wealth or their children in China.

Living in the UK I see huge numbers of chinese teens and university age students coming to be educated in our private schools and universities. Everyone who has the means to do so gets everything of value out of the country as soon as possible. They may have businesses there but it is ALL debt funded. 

Mon, 11/12/2012 - 04:31 | 2971880 bunnyswanson
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Vancouver is a destination of the Chines.  It's transformed the favor of the city according to a friend who has visited ther.


Rick'sRant - China-Canada trade agreement -  Vancouver Island residents rally against FIPPA


Many of those who want to leave are middle-class professionals who own a larger-than-average apartment in Beijing or Shanghai and earn more than an annual 200,000 yuan ($32,000), according to Zhao of the Beijing immigration consultancy.

“Of all those who want or plan to emigrate, 80 per cent want their children to get a better education,” she said.

Chinese were the biggest group of immigrants to Canada from 2001 to 2009, although they fell to third place in 2010 behind people from the Philippines and India, even as the numbers of Chinese rose.

In 2010-2011, China became the number one source for immigrants to Australia as numbers of new Chinese migrants rose to just under 30,000. In the U.S., Chinese were behind only Mexicans in being granted lawful permanent residence in the three years to 2010, the latest year for which data is available.

The exodus highlights how many Chinese see a better future abroad.

While China’s policies have lifted millions out of poverty over the last two decades, the authoritarian government tightly controls many aspects of daily life. China’s leaders punish dissent and any perceived challenges to their power, and censor what can be read online and in print. They limit most families to one child.  - Backdoor into Canadia via Quebec -

Mon, 11/12/2012 - 04:25 | 2971878 poldark
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If China is buying all this gold who is selling? Why has Gold not risen very much.

Mon, 11/12/2012 - 04:49 | 2971885 saulysw
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China is winning. Not in the Charlie Sheen way, either.

Mon, 11/12/2012 - 06:17 | 2971920 orangegeek
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Ref:  Hong Kong Census Bureau


According to the communists, the communists are buying more gold.  Communists never lie.


60% of global trade is in US Dollars.


Let's all Kum Ba Yah and change that.  Washington won't mind.

Mon, 11/12/2012 - 08:18 | 2971973 bunnyswanson
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A large part of these Central Bank purchases of gold bullion are not disclosed. They are undertaken through third party contracting companies, with utmost discretion.

US dollar holdings and US dollar denominated debt instruments are in effect being traded in for gold, which in turn puts pressure on the US dollar.

In turn, both China and Russia have boosted domestic production of gold, a large share of which is being purchased by their central banks:

~~Global trade of USD for gold perhaps - Flooding the market with USD.~~

Mon, 11/12/2012 - 07:24 | 2971949 slackrabbit
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Just IN:

Der Spiegel reports the Federal Reserve has refused to allow German inspectors to even view the country’s massive gold reserves “in the interest of security and of the control process“.


Government: Protecting you from you, for your own good!

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