How to transfer money to and from China: Limits and regulations

Being an expat in China, whether you are living, studying, or working there, finding up-to-date regulations, especially regarding finance and international money transfer policies, can be very challenging and confusing.

Wise has been a global money transfer provider since 12 years ago, founded in London in 2011, and now serving over 16 million satisfied customers worldwide. In this article, we will answer many of your questions: what are the most up-to-date money transfer limits in and out of China in 2023? And what other regulations and tips I should be aware of?

More importantly, if you need to send money in or out of China, how to do it, how to deal with banks, and especially how to transfer your money, and hard-earned income out of China through a Chinese bank. I don’t speak Chinese and don’t want to deal with a local bank. Can I use Wise to send money in and out of China instead? The answer is yes!

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Sending money to China: What’s the limit

Limits and restrictions depend on who you are sending to, whether the recipients are Chinese nationals or foreigners, and for what purposes. China State Administration for Foreign Exchange has detailed rules applying to different circumstances. And the country you are planning to send from has its own international transfer rules to consider.

Transferring money to China from the USA: What’s the limit

There is no limit on how much money you can send internationally to and from the USA set by the government or financial regulators. However, your bank may have its own wire transfer limits on how much you can transfer at once, daily, or monthly.

You can send or wire transfer less than 10000 USD abroad without any extra paperwork, however, you have to be aware that there is a limit if you send an international wire transfer over $10,000, your bank or financial institution in the USA is required by law to report it directly to the IRS.¹

Your bank may also ask for additional information, including the following:

• Evidence for the source of the funds
• Proof of income source - how you generate income more generally
• Information about the recipient, including ID proof
• The primary reason for the transfer.

Note that this reporting is generally done by the bank or money transfer service to ensure that transfers aren’t connected to illegal activity, such as money laundering or funding crime.

Transferring money to China from the UK: What’s the limit

The UK government doesn’t limit the amount of money that can be sent abroad from the UK. However, the Financial Conduct Authority (FCA), and HM Revenues and Customs (HMRC) do monitorinternational money transfers to check for illegal activity.

For example:

Your bank or finance service provider in the UK is required by the government to verify the complete information from both the payer(you) and payee(recipient). If your transaction sits within these 3 categories below:²

• When you send over £1000 abroad
• Any part of the transfer is funded by cash or anonymous e-money
• If there are multiple linked transactions that add up to more than €1,000

Limits on sending money to Chinese nationals in China

If you are sending foreign currency to Chinese nationals、 business partners、relatives、or Chinese friends, apart from considering the limits of your country or bank, there are limits on how much Chinese nationals can receive per payment as well. As at the time of writing this article( 14th of August, 2023), according to the China State Administration of Foreign Exchange, each Chinese individual has a general quota of converting or purchasing a maximum of 50000 USD per person, per year. The State Admin of Foreign Exchange can adjust this quota according to the nation’s foreign currency balance annually.³

However, most websites or blogs don’t explain further, for example that: 50000USD is the limit for general sending money purposes.

According to the Bank of China, Chinese individuals have a need of converting or purchasing foreign currency that fits these 7 categories of special purposes, the 50000 USD quota won’t apply if the money is to:⁴

1. Cover the recipient to study and living abroad during the study
2. Cover the recipients’ medical treatment abroad
3. Cover costs or other kinds of professional training abroad
4. Cover subscription fees or membership costs of international organizations
5. Support any direct relatives in China financially
6. Support the recipient's international purchase
7. Cover consultancy fees that the recipient has ordered from you as a service

Therefore, if you are sending money to a Chinese partner, you can technically send more than the 50000 USD limit, as long as you can provide a good reason!⁵⁺⁶⁺⁷

The Bank of China in China is similar to the Federal Reserve Bank in the United States. All international foreign currency transfers are dealt with by the Bank of China(BOC) in the first instance no matter which bank your recipient has an account with.

How much cash can I bring into China?

According to the regulation made by the Chinese foreign exchange and China customs administration, international travelers can bring cash of no more than 5000USD⁸, or no more than 20000 CNY when entering China.⁹ If you bring more than 5000 USD(or the equivalent of foreign currency), you should declare it with Chinese customs.

This limit doesn’t apply to the two types of travelers (listed below) who enter China very frequently.

1. International travelers who enter China more than once on the same day:

   • First entry–Can bring cash less than 5000 USD
   • From second entry– Can bring cash no more than 500 USD

2. International travelers who enter China more than once within 15 days:

   • First entry–Can bring cash less than 5000 USD
   • From the second entry– Can bring cash no more than 1000 USD

Can I send money out of China: What’s the limit?

For Chinese mainland residents, there is a USD $50,000 annual limit on money transferred outside of mainland China. For foreigners working in China, the limit on transfers is based on how much legal, taxable income you have received in China.

Is my income taxable in China?

China defines a taxable resident based on two factors: your address and how long you have lived in China in a tax year. If you are a tax resident, then you are obligated to pay tax on both your earnings made in China and outside of China. If you are just a resident in China but not yet registered for tax resident in China, you only pay tax for the part of earnings you made in China, not earnings outside China.¹⁰

Different policies for Chinese nationals and foreigners

Please be aware of sending money out of China or purchasing foreign currency, there are different policies regarding Chinese nationals and foreigners.

For Chinese nationals, the annual limit they can purchase or convert is 50000 USD per person per year.

For non-Chinese nationals, the limit doesn't apply when you purchase foreign currency, but when you convert your foreign currency to CNY, the 50000 USD cap per person per year applies. For any amount more than this you need to provide documents to the bank to convert; suitable documents are listed below.¹¹⁺¹²

• House rental contracts
• Expense invoices
• Medical treatment or study tuition fee invoices

Wise provides a new way of sending money out of China

Founded in 2011, Wise is an international money transfer provider servicing 16 million happy customers globally. You can use Wise to send money to over 160 countries in the world. Earlier in 2023, we made it possible for expats in China to use Wise to transfer your legal earnings in CNY to your own bank account abroad now! Sending money out of China with Wise, we currently have a limit of 100,000 CNY per transaction. The overall money transfer limit depends on your annual income in China and the amount of tax you paid in China on your income.

We have a Wise App available in English which you can download in the Apple store or Google Play. Once installed you can open an account, upload your ID docs and transfer/receive money all on the app yourself. No need to go to Chinese banks where often the level of English language spoken is quite low (depending on the city you live in).

Pay for your transfers with Alipay

We’ve introduced an easier way for you to pay for your transfers — Alipay.

Whether you’re paying expenses in another country or sending money to family back home, you can use Alipay to pay for transfers of up to 50,000 CNY.

Unlike bank transfers, there are no minimum limits on what you can send and Alipay operates all day, every day. So you can send money at a time that suits you, not them.

How to pay with Alipay

1. Enter an amount: Select CNY as the currency you’re sending from, then enter how much and which currency you’re sending to — you can send up to 50,000 CNY per transfer.
2. Choose your recipient: This needs to be either your own account outside of China or your Wise balance.
3. Select Alipay as your payment method: If you’re on your phone, you’ll be automatically redirected to your Alipay app. If you’re using our website, you’ll be shown a QR code which you can scan from your Alipay app.
4. Confirm payment: Once you’ve paid, go back to the Wise app or website and select ‘I have paid’. Your transfer will then be on its way.

Other than transferring money, having a Wise account will also allow you to have 8+ local currency bank account details such as having a USD/EURO/POUNDS account detail, and with those you can easily receive payment in related currencies without converting which will save you fees in unnecessary money conversions.

Please also be informed that Wise in China is operating under a local partner’s license.

How to send money from China using Wise

1. Open a Wise account (either on website or download Wise App)
2. Verify your identity
3. Fund your transaction: At present, Wise supports you to pay for your transaction using 15 major banks in China. Below are a few most common ones. You can find the full list here.
   • Bank of China
   • Industrial and Commercial Bank of China （ICBC)
   • Bank of Communications
   • China Merchants Bank (CMB)
   • China Construction Bank
   • Agricultural Bank of China （AgBank）
   • Shanghai Pudong Development Bank
   • China Minsheng Bank
4. Confirm your transactions and it will normally take 2-3 working days to send CNY to your account abroad.

Open Wise account now!