[How To:] Get, Exchange, and Use Money in China

Understanding how to obtain, exchange, and use money in China is crucial for both residents and travelers. This guide provides insights into the best methods for acquiring currency in China, exchanging foreign currency, and practical tips for managing money.

Overview of Chinese Currency

China's currency is the Renminbi (人民币), commonly abbreviated as "RMB." The literal translation is "people's money." In everyday conversation, most Chinese people use "yuan" or "kuai" (pronounced "kwye," rhyming with "sigh") to refer to the currency unit.

In China, you will primarily deal with paper bills rather than coins. The most common bill denominations are: 100, 50, 20, 10, 5, and 1 yuan.

For expatriates and visitors, small transactions for things like food, lodging, transportation, entertainment, and medical expenses will involve payments in various forms: card payments, cash, or mobile payments. Cash payments require currency exchange, while mobile payments need foreign cards linked or usable in local payment systems.

Here's a video version of the currency exchange process for your reference.

Currency Exchange

Channels for Exchanging Currency:

When entering China, if you carry foreign cash, you must declare amounts exceeding the equivalent of $5,000 to customs. For amounts below this threshold, no declaration is required. Frequent entries within a short period also require declaration if the amount exceeds this limit.

After entry, foreign cash can be exchanged for RMB through several channels:

• Bank Branches: Foreigners can exchange currency at banks by presenting valid identification such as a foreign passport, residence permit, or other authorized documents. Annual exchange limits are set at the equivalent of $50,000 per person. Daily exchange limits are up to $10,000 equivalent in foreign cash, with amounts exceeding this requiring a customs declaration form.
• Self-Service Machines: Foreigners can use self-service machines with valid identification to exchange foreign cash for RMB. The daily exchange limit is up to 5,000 RMB equivalent. Some machines also support digital RMB wallet top-ups.
• Foreign Currency Exchange Points: Found in international hotels and similar locations, these points support one-way exchanges from foreign cash to RMB. The daily limit is up to 10,000 RMB equivalent, and the annual limit is 50,000 RMB equivalent.
• Authorized Exchange Institutions: Foreigners can exchange foreign cash for RMB at institutions displaying "Currency Exchange" signs. The daily limit is up to $5,000 equivalent, and the annual limit is $50,000 equivalent.

Linking Foreign Cards

Foreign visitors can use apps like Alipay or WeChat by linking international bank cards to make payments in China. These cards include non-UnionPay cards like Visa, MasterCard, American Express, and JCB.

Key Points for Linking Foreign Cards:

• Identification: Registration may require verification with a passport, Mainland Travel Permit for Hong Kong and Macau Residents, Taiwan Compatriot Permit, or other valid documents. Currently, there are pilot programs allowing certain payments without full verification, but exceeding limits will require full authentication.
• Transaction Limits: Single transactions are limited to $5,000, with an annual cumulative limit of $50,000.
• Fees: Transactions under 200 RMB are fee-free. For transactions over 200 RMB, a 3% fee is applied.

Summary

With advancements in mobile payments and international ATMs, managing money in China has become increasingly convenient. For most short-term travelers, cash remains the most practical payment method. Using ATMs to withdraw cash is generally the easiest and most cost-effective option.