China is neither in any form of gold standard nor to the best of...

China is neither in any form of gold standard nor to the best of my knowledge is trying to introduce one.

When China receives dollars due to its trade surplus it issues renmimbis in exchange, a process that may end by causing inflation unless the Chinese Central Bank manages to sterilize those extra renmimbis (take them out of circulation) which it can do at a cost.

The alternative to central bank sterilization is for Chinese firms to invest their surplus funds abroad, in which case renmimbis are exchanged for dollars and therefore taken out of circulation as those dollars are sold by the Central bank to them in exchange for renmimbis. However this process is not dependent on the type of investment to be made. It happens regardless if the investment is in property, telecommunications, iron ore mining, gold mining, banking (yes the Chinese are looking for a bank in Europe for 15 billion dollars link here: www.ft.com), car making, or whatever.

Moreover, Intrepid Mines and lots of other Aussie miners are investing in gold mines abroad and I never heard anybody inferring from that that we are about going back to the gold standard.