Loki, I agree with what Infose posted earlier today.
China is slowly but surely liberalising its gold market. Listen to segment 4 of this recent interview by Al Korelin with Bron Suchecki from a Perth Mint perspective:
As Bron says, only 9 local banks are able to import gold in China and there are quotas leading to premiums from time to time. He believes there's a long way to go and that Chinese demand will 'grow and grow'... and that their reported import numbers are a bare minimum.
I disagree with your walnut comparison because Walnut prices have gone crazy. There has been no such bubble in gold prices from a local Chinese perspective over the last decade, more a case of simply opening up their market IMO: