China tightly controls gold imports to manage surplus, Michael Pettis notes - Traders Union
China tightly controls gold imports to manage surplus, Michael Pettis notes - Traders Union
Source: Traders Union
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DW NOTE
China doesn't import gold to meet demand — it imports exactly enough to prevent capital flight disguised as jewellery purchases. Pettis is describing capital controls, not trade policy. When your citizens trust metal bars more than your banking system, you ration the bars.