Moving Money In & Out of China: A Guide for Expats & Digital Nomads

You’ve figured out how to earn a living while based in China. Congratulations! Now you face a new, and often more confusing, challenge: the world of currency controls.

How do you legally receive your foreign salary in your Chinese bank account? How do you pay your student loans or credit card bills back home? Navigating China's financial regulations can be tricky, but it's entirely manageable with the right tools and a clear understanding of the rules.

This guide breaks down the legal and practical ways for expats and digital nomads to move money across China's borders.

The Golden Rules: China's Currency Controls Explained

First, you have to understand that the Chinese Yuan (CNY/RMB) is not a freely convertible currency. The government strictly controls the flow of money in and out of the country.

The $50,000 Annual Limit (For Receiving)

For individuals, the most important rule to know is the $50,000 USD annual quota. This is the maximum amount of foreign currency that a Chinese national (or a foreigner with a Chinese bank account) can convert into Chinese Yuan per year.

Every transfer you receive from abroad and convert into RMB counts towards this limit. It resets every January 1st.

The Challenge of Sending Money Out

Sending money out of China is a different and more difficult process. The government wants to prevent capital flight, so they require you to prove that the money you're sending was earned legally and that you have paid Chinese taxes on it.

---

Scenario 1: Receiving Money in China

(e.g., from a foreign employer, freelance client, or your own savings)

You have two primary, legal methods.

Method 1: Wise (formerly TransferWise) - The Best All-Rounder

For most regular transfers, Wise is the simplest, fastest, and most cost-effective solution.

• How it Works: You send a foreign currency (e.g., USD, EUR) from your overseas bank account or Wise account. Wise handles the conversion and deposits Chinese Yuan directly into your recipient's Chinese bank account. The recipient must be a Chinese national with an Alipay or WeChat account linked to their bank card.
• The Catch: The transfer is subject to the recipient's $50,000 annual quota. Wise also has its own per-transaction limits (check their site for the latest figures). This method is ideal for funding your daily life or sending money to Chinese friends, but not for massive transfers.

Method 2: Bank Wire Transfer (SWIFT)

This is the traditional method, often used by companies paying their foreign employees in China.

• How it Works: The sender initiates a standard international wire transfer to your Chinese bank account.
• The Catch: The funds will arrive and sit in your account in the original foreign currency (e.g., USD). To use it, you must go to the bank in person with your passport (and sometimes your work permit) and execute a "forex settlement" (结汇 - jiéhuì) to convert it into RMB. This is more bureaucratic but necessary for large, official salary payments.

---

Scenario 2: Sending Money Out of China

(e.g., paying bills back home, moving savings)

This is the more difficult direction and requires significant paperwork.

The Legal Way (For Expats with a Work Permit)

If you are legally employed in China, you can legally send your post-tax income abroad.

1. Go to a Major Bank Branch: You must do this in person.

2. Prepare Your Documents: This is a paperwork-heavy process. You will need:

   • Your Passport
   • Your valid Work Permit
   • Your official, stamped Employment Contract
   • Tax Payment Records (完税证明 - wánshuì zhèngmíng) for the period covering the income you wish to send. You can get this from the local tax office.
   • A payslip from your company.

3. The Logic: You are essentially proving to the bank that the money you're sending out was earned legally in China and that all relevant income taxes have been paid. Without these tax documents, the bank will not process the transfer.

Important Note: You cannot use services like Wise to send money from a mainland China CNY bank account to another country. This route is blocked by Chinese regulations.

Best Practices & Pitfalls to Avoid

• Keep Meticulous Records: Always save digital and physical copies of your employment contracts, visa documents, and especially your tax payment certificates.
• Plan Ahead: Sending money out is not a quick process. Don't wait until the day before a bill is due. Give yourself at least a week to get the paperwork and visit the bank.
• Avoid Unofficial Channels: You will encounter "money exchange agents" online or in person. Using these services to get around the rules is illegal and exposes you to scams and serious legal risk. Don't do it.

Managing your finances across China's borders requires diligence and good record-keeping. By understanding the rules and using the proper channels, you can manage your money compliantly and with confidence.