Trump has taken action on Russia, and a historic scene of US-Russia takes place. At this point in time, Western experts have discovered that China is storing large amounts of gold.
October 23, 2025, U.S. imposes direct sanctions on Russia's two largest oil exportersThe two companies’ exports accounted for 50% of Russia’s total exports, the most targeted U.S. economic blow to Russia since the end of the Cold War.
Almost at the same time, the EU's high representative for foreign and security policy, Karas, announced that through the 19th round of sanctions against Russia, for the first time he would point to the Russian economic core pillar of the natural gas industry and ban Russian liquefied natural gas from entering the European market.
In an interview with the media, Putin said the sanctions would not have a significant impact on the Russian economy.
And Trump gave a "seven months later to know" response, this large amount of smell instantly filled the global market, the day the international oil prices rose by more than 5%, the New York commodity exchange light crude oil futures price received $ 61.79 per barrel, London Brent crude oil futures price received $ 65.99 per barrel, the market concerns about the tightening of energy supply can be seen.
The logic of U.S. sanctions on Russia is clear, and it is trying to strike its economic vitality by cutting off half of Russia’s crude oil export channels.
But Washington has clearly underestimated Putin’s determination to gamble the country, and has ignored the profound changes that have long since occurred in the global energy landscape.Russia is no longer solely dependent on the European and American markets, and China and India in Asia have become its important energy partners.
Against the backdrop of pressing Western sanctions, Russia is accelerating the diversification of energy exports, selling more crude oil and natural gas to Asian markets, and vigorously promoting local currency settlement.
This strategic shift not only eases the pressure of sanctions, but also weakens the dollar’s dominance in energy trade to a certain extent.
The Russian economy, after years of adjustment and preparation, has a certain tolerance for external sanctions, and energy as a rigid demand commodity, even in the face of sanctions, the demand of the global market still exists, which provides space for Russia to find alternative export channels.
Just as the US-Russian game became hot, Western experts suddenly discovered that China was quietly pursuing a far-reaching financial arrangement – a massive accumulation of gold.
Data released by the State Administration of Foreign Exchange on October 7 showed that as of the end of September 2025, China's gold reserves were 74.06 million ounces, an increase of 40,000 ounces from the previous month. This is the 11th consecutive month that the People's Bank of China has increased its gold holdings.
Claudio Glass, an expert in Swiss monetary history and economics and an independent precious metals consultant, even threw out a surprising view in an interview: China's registered gold holdings will surge 25 times in 2025.
Behind this data is China’s firm determination to get rid of the US dollar hegemony and build a financial security net. Glass once and for all pointed out that the US dollar has become a political weapon, and Russia’s encounters have shown the world that private property rights are not respected on the political level. The U.S. West’s move to freeze Russia’s foreign exchange reserves has completely shaken the confidence of countries in dollar assets.
In this context, gold, such as the old and reliable reserve assets, again became the first choice of countries, and many countries abandoned the conventional hedge instruments of U.S. debt and instead bought gold, this phenomenon is evident in the BRICS countries.
China's continued increase in gold holdings is by no means accidental, but based on a profound judgment of the international situation and long-term strategic considerations.
First, gold is an important tool to hedge the risk of dollar volatility. With the U.S. frequently using the U.S. dollar as a sanction weapon, holding too many U.S. dollar assets is at risk of being frozen and confiscated, increasing gold can effectively optimize the foreign exchange reserve structure and reduce dependence on the U.S. dollar.
Secondly, gold is an important support for the internationalization of the RMB. Gras stressed that the internationalization of the RMB may take time, but having the gold backbook can speed up this process.
As a global hard currency, gold has a natural credit foundation. The RMB endorsed by gold is more likely to be recognized in international settlements, which helps to enhance the international status of the RMB.
In addition, gold is one of the most stable shelter assets in the face of increasing global geopolitical uncertainty.
As the world's second-largest economy, China's foreign trade scale is huge, international risks are complex and diverse, and sufficient gold reserves can enhance China's ability to cope with external shocks and maintain national financial security.
Glass also observed that BRICS countries are bypassing the US dollar with the "gold strategy" and establishing a monetary system endorsed by gold. In the future, there may even be a liquid gold system within BRICS countries for physical delivery and extraction.
This trend reflects the dissatisfaction and reform demands of emerging economies with the existing international monetary system.The long-standing international monetary system with the dollar as its core has allowed the United States to harvest global wealth with monetary hegemony, while using the dollar as a tool to safeguard its hegemony and sanctioning other countries.
With the rise of emerging economies, this unfair monetary system is becoming more and more unsustainable. The gold monetization process promoted by BRICS countries is a powerful challenge to the hegemony of the US dollar, and it also opens up a new path for the diversified development of the global monetary system.
From a more macro perspective, the current US-Russia game is not only a contest between the two countries, but also an important collision in the process of reconstructing the global order.
During the Cold War, the world was in a bipolar pattern between the United States and the Soviet Union. Today, China has become a pole that the United States and Russia cannot ignore. The triangular relationship between China, the United States and Russia has profoundly affected the direction of the international situation.
The United States tries to maintain its hegemonic position and curb the trend of multipolarization by imposing sanctions on Russia; Russia does not hesitate to gamble on its national destiny and resolutely defend its own interests and strategic space; Through sound financial layout and strategic operation, China seeks opportunities for its own development in the complex international pattern, and at the same time promotes the construction of a fairer and more reasonable international order.
Trump’s “Six Months to Know” is just a political hoax: sanctions have always been a double-edged sword that will counterfeit the U.S. and EU economies and boost global energy prices and inflation while fighting the Russian economy.
China's continued increase in its holdings of gold is not only a response to the current crisis of confidence in the international monetary system, but also a preparation for possible global financial turmoil in the future.
In this war without smoke, there is no absolute winner, and all countries are adjusting their strategies based on their own interests and judgments.
But it can be assured that the roots of the dollar hegemony are gradually loosing, the trend of multipolarization is unstoppable, the future global order will be more complex and multiplicated, and gold as a stable value hub, its strategic significance will be increasingly highlighted.
China's gold strategy is not only a wise move to safeguard national financial security, but will also play an important role in the reconstruction of global order.
References:
China accelerates gold hoarding: dealing with the weaponization of the US dollar and US tariffs-Sputnik News Agency
Putin responds to Trump's cancellation of meeting: U.S. new sanctions have little impact on Russian economy