Money and Banking for Foreigners in China

In this post, I will answer the often asked questions about banking for ex-pats in China. I will cover Chinese banking, accessing and transferring money out of China, and much more. I tried to make this guide complete, but I am sure I missed a few aspects.

And here I want to clarify that I am not finance professional or a banker. I may not have properly represented everything in this post. I tried to share basic info that I know. Remember that regulations are frequently changing in China. So for complete info, you should consult a professional.

Use Cash or Card in China?

In China, cash was used for everyday life. Everyone had cash, they can pay in cash, and all stores accepted cash.

However, at present WeChat Pay has become very popular. People are using this extremely popular messaging app to pay money. They pay money simply by scanning a QR code. Even some places don’t accept cash or card payments to any further extent.

As an ex-pat, you can use WeChat Pay only if you have a Chinese bank account. Otherwise, you have to use cash or a card.

In China, international credit cards are accepted but not common as Chinese credit cards with UnionPay. Visa and Mastercards are better than America Express, but all these have a quite low acceptance rate in China. The issue is that Chinese bank cards are difficult to get.

For cash, the highest bill is 100 RMB. RMB is a short form of Renminbi, the name of the Chinese currency. One unit of Chinese currency is called yuán 元 or in a regular language, it is called kuài. And the other RMB notes are 50, 20, 10, 5, and 1. Units lesser than kuài are called máo 毛 and fēn 分.

The cash you will often use is a bill, though the coins are also in use. In some cities, the 1 RMB coin is often used. However, all over the country, the coins are used as the fēn.

How to get a UnionPay Bank Card for Expats?

UnionPay is the most used banking network in China over other international brands like Mastercard or Visa. UnionPay bank card is accepted in all of the ATMs in China as well as in other regions where that card is accepted.

So, as a foreigner, how can you get your UnionPay card? There are two main ways:

Open a Chinese bank account: When you open a Chinese bank account, you will automatically get a UnionPay card. You can use this UnionPay card at ATMs, but the most beneficial use for this card is opening your Alipay account or WeChat Wallet. When you open the account, make sure to activate online banking.
Get a UnionPay eCard: For American ex-pats, there is a better solution they can apply for a prepaid UnionPay card from eCard. You can add a balance from your U.S bank account and use the card to pull cash at a lower rate than a Visa card. I use my card to save money on wire fees. I pull the cash from my U.S bank account and deposit it into my Chinese bank account. This way you can save hundreds of dollars.

If you belong to some other country like Thailand, Singapore, or an Asian country that issue UnionPay cards, you will be much better off than if you use Western cards like Mastercard or Visa.

Can I access money from a foreign account?

Yes, you can use your foreign bank card at a Chinese ATM to withdraw money. However, you may have to find one ATM that lets you use your foreign bank card as all ATMs don’t accept foreign cards. Sometimes you even have trouble with ATMs that say they accept foreign cards.

Fess can be varying depending on the bank your card comes from.

For example, China Construction Bank is a member of the Global ATM Alliance, like Deutsche Bank, Bank of America, and other banks from all over the world. Using a BofA card at a CCB ATM would save the international ATM charge but no other dues, like foreign currency fees.

Before using your card at CCB ATM, make sure you remember your card PIN before you move to China. Without PIN you can’t pull cash.

Can Expats in China do Online Banking?

In China, there is always a line at banks. If you hate waiting in line you can do online banking.

In China, some banks have online banking features, but the English interface is often limited, however, this has been getting better. For online banking, you may need a specific type of account, not all accounts qualify for online banking. While opening your bank account, make sure to mention online banking.

Keep in mind that some online banking systems required a physical key that you have to insert into your computer. The solution for this security concern is that only use Windows computers, not Apple computers. However, this may get changed in the future.

Many banks offer telephone banking with an English interface. In some cases, fees for services done through online banking are lesser than the bank.

Do I really need a Chinese Bank Account?

If you want to do banking in China, yes, you need a Chinese bank account.

If you are working in a Chinese company, and receive your salary from a Chinese entity, you need a Chinese bank account. It is also easy to pay rent and utilities at a Chinese apartment with a local bank account.

For using different apps and mobile payment features, like WeChat Pay or Didi Chuxing, you must have a verified Chinese bank account.

Note: Receiving money into a local bank account is easy. You can pull the money, transfer money, wire money, etc. Though, it is very difficult to receive money out of a local bank account.

I know many foreigners who have moved out of China and tried to save their money later. It is very hard.

Can Expats easily open a Bank Account in China?

Opening a bank account in China is very simple. You only have to bring your passport and make a minimum required deposit. However, the rules often change in China, so know all the requirements before opening your account.

In China, banks require that you must have a one-year visa to open your bank account. If your visa is for a shorter time, you are not capable to open your bank account.

If one bank rejects your application, you should try another bank.

What Banks are in China?

In China, banks are generally owned by the local or central government. There are many banks in China, some local and big central banks are:

China Construction Bank (CCB)
Industrial and Commercial Bank of China (ICBC)
Bank of China (BOC)
China CITIC Bank

Bank of Beijing is one of the biggest local banks. The ATMs and branches for these are found all over Beijing.

International banks are also accessible in China, like HSBC and Citibank. Though they are international banks, it does not mean that they are easy to use or easy to transfer money.

Which Chinese Bank should you choose?

There are so many bank options in China, so which bank should an ex-pat choose? Here are some aspects to consider while selecting a bank in China.

Is it a bigger Bank? Choose bigger banks they have a better banking network all over the country. It is important to keep in mind if you plan to travel to China.
Is the bank suitable for you? Choose a bank whose ATM and branch location are nearby to your home or office.
Does the Bank offer online banking? Find a bank that offers online banking. Online banking is convenient, not compulsory. However, some local banks may not offer this.
Is it willing to fulfill your requirements? As an ex-pat, you should choose a bank which offers English-speaking staff and facilities to pay utilities.
Does the bank have a connection with your home bank? A connection with your home bank may reduce fees for you.

Ultimately there is no best bank in China; it all depends on your location and specific requirements. Before choosing a bank do your research, ask your friends, and then select one which is suitable for you.

How do I open a Chinese Bank Account?

To open a bank account in China, you must have your passport with a valid visa of at least one year and a first deposit.

To open an account, you have to fill the required forms; the bank employee will help you, but remember that not all branches have an employee that can speak English. So, it is better to bring a Chinese-speaking friend who can help you fill the forms.

You will get your bank card immediately, and then you can set your card PIN. A PIN is a 6-digit number. You will get only one bank card for a personal account.

For couples, joint accounts are not accessible in China. Most ex-pat couples ask this question, but unfortunately, it is often impossible in China.

Your Chinese bank card is also an ATM card that has a UnionPay logo. You can also use your bank card outside of China to withdraw money from your account at ATMs with the China UnionPay logo. For example, Sparkasse in Germany, Citibank in the U.S, and even some stores outside of China accept payment with a Chinese bank card.

You can add both Chinese and foreign currencies to your Chinese bank account. This account is called a dual currency account and is used for EUR, USD, and other foreign currencies. Keep in mind that you can’t access the foreign currency via ATM. To withdraw foreign currency, you have to go to the banker and pay a small fee.

How much can I Withdraw from a China ATM?

The maximum amount you can withdraw from a China ATM is 20,000 RMB per day. The standard ATM withdrawal fee in China is 2 RMB, no matter if you withdraw 200 RMB or 10,000 RMB.

All ATMs limit the withdrawal amount per day. Some ATMs limit you to only a couple thousand RMB, so to withdraw the amount of 20,000 RMB; you have to withdraw multiple times.

Other dues, like text message service, depending on account type and bank. If you have plenty of money, you may be eligible for a VIP bank account, where several dues are waived.

With a VIP account, you have no limits to using a bank card. There is no maximum spending limit in China. It depends on your account status with the bank.

How do I make Payments in China?

The most common method to make payments in China is an account-to-account transfer. People use this method to pay rents, school fees, and other dues. To transfer the money, you need the recipient's name, bank account number, and branch name.

Even if you don’t have a Chinese bank account, you can still transfer money using the bank branch name and receiver account number.

If both parties have an account in the same bank there is often no fee for account-to-account money transfers otherwise, a small amount will be charged. You can also make payments via text message.

How to Transfer Money in or out of China?

As an ex-pat in China, you may need to get some money wired into China, or if you are a U.S ex-pat you can use the eCard to pull money from your U.S account and then deposit it into your Chinese account.

You can easily get your foreign currency from your home bank into your Chinese bank account without any limits or restrictions.

Quick Tip: If you use Transferwise service, you can avoid bank wire fees and get your money delivered to your Chinese account as Chinese currency instead of foreign currency. You must try this.

If you get foreign currency into your Chinese account, it will remain as foreign currency until you convert it into Chinese currency. There may be a limit on how much money you can convert into Chinese currency per year.

The fees for transferring money probably charged at your home bank as Chinese banks usually don’t charge for incoming money.

Transferring money out of China is a bit complicated. To transfer your money out of China, you have to prove that it is earned into China and you have paid all income taxes on it.

The banks require official tax documents that prove you have paid all taxes in China. You have to prove that you have earned this income in China. I know many foreigners in China whose money is stuck because the banks would not approve their documents. So be careful.

Keep in mind that you can’t transfer RMB directly out of China; you have to convert RMB into dollars or whatever currency you need. To transfer RMB out of China, you need some paperwork and three red stamps on every paper. Yes, it is another complication.

Here are the requirements for transferring money out of China. But keep in mind that these requirements may change with time. So it is better to confirm with your banker beforehand.

Passport
Bank card
Official income documents from your employer
Employment contract
Official tax documents for that income

Can I convert RMB to foreign currency without paperwork? With your passport, you probably convert up to 500 USD from RMB per day. But this rule can be different in different banks. So you should consult with your banker first.

But as I mentioned above, with your Chinese bank card, you can withdraw foreign currency from your Chinese bank account.

Final Thoughts

I hope this post has clarified a lot of your questions about banking for ex-pats in China. Here are a few important aspects to consider when you plan your bank strategy in a foreign country:

First, do you have a Chinese bank account? You don’t need it, but there are many advantages to having your Chinese bank account.

Second, how much money do you want to transfer into China? The money can be transfer in many different ways, including pulling cash from the eCard, wiring directly from your home bank, or even using Transferwise. Whatever method you use, only transfer money as much as you need. Keep in mind that it is more difficult to transfer money out of China than to get it in.

If you know anything about the topic, please share it in the comments below.