China has reportedly purchased 300 tons of gold this year. Economics claim that China has a goal of 10,000 tons in order to launch a gold-backed Yuan to rival the USD. However, the Yuan is already a respectable rival among the BRICS nations. These countries swap currencies and then settle end-of-year deficits and surpluses with gold.
I think if China really wanted to replace and not just rival the USD with a gold-backed Yuan, they would need the 170,000 tons of gold Karen Hudes says is in the Bank of Hawaii.
Thinking about the numbers optimistically; if China had say 200,000 tons of gold, that could equal approaching 10 Trillion dollars. Using standard fractional reserve principles, that 10 Trillion could be leveraged to 100 Trillion and then be able to do the kind of work needed to run the global economy.
To give you some perspective on the global economy. World GDP is about 50 Trillion USD and the world derivatives market is about 20 x GDP = 1.2 quadrillion. The immense size of these numbers is why I question economic reports about China and such relatively small amounts if gold. These small amounts would serve to keep the current BRICS dollar exclusion zone going.