Entering the Chinese market is exciting and complex. Beyond the customs and language, navigating payments reveals several hidden layers: Renminbi controls, cross-border restrictions, settlement delays, and evolving digital currency trends. To succeed, you must understand how China’s payment system works and build strategies to keep your cash flowing smoothly.

China’s dual payment structure: Swift vs CIPS

Historically, global businesses relied on SWIFT, which is now enhanced by the Global Payments Innovation (GPI) protocol. This network processes most global payments, with 89% arriving within 60 minutes. Yet SWIFT/GPI still depends on bank infrastructure, local cutoffs, manual checks, or currency controls, which can delay payments after they reach recipient banks.

China offers an alternative: the Cross-border Interbank Payment System (CIPS). It is designed to support RMB internationalisation. RMB, which is shortened from Renminbi, is China’s currency system. CIPS has added African banks like Standard Bank and Afrexim, handling trillions in onshore and offshore RMB transactions. It can clear payments in seconds, far faster than many SWIFT routes, but only for yuan settlements.

Also read: How wealthy people in China send money abroad

The yuan’s growing role in cross-border trade

China has intentionally pushed for greater global use of the yuan. This effort accelerates yuan adoption even among non-China trade partners, particularly in Africa and Asia.

Still, the yuan only accounts for roughly 4% of global payments, far behind the dollar’s 48%. Its reach is rising, but widespread use beyond trade finance remains limited.

Business obstacles in payments to China

1. Currency limitations: If your clients or suppliers invoice in yuan, you may benefit from faster CIPS-based payments, but SWIFT/GPI in USD/EUR/GBP can face geographic delays.
2. Regulatory red tape: RMB transactions are subject to PBOC capital controls. State-owned banks often add manual reviews or daily limits, delaying funds.
3. Banking network gaps: Non-CIPS banks require SWIFT routing through intermediaries, which can add cost and processing time.
4. Volatility and hedging needs: Even with PBOC stabilisation efforts, the yuan occasionally fluctuates. However, RMB trade settlements via swaps or forwards help mitigate this.
5. Emerging digital yuan: China’s digital RMB (e‑CNY) shows promise, but it remains controlled, domestic-focused, and not yet widely accepted abroad.

Also read: How freelancers in China can invoice overseas clients easily

Payment-fit strategies for doing business with China

Know your currency context:

• Choose RMB when billing Chinese partners to use CIPS’s speed advantage.
• Stick to USD/EUR/GBP for broader SWIFT reach and banking familiarity.

Pick the right corridor:

• Work with banks connected to CIPS if you transact in yuan.
• For global currencies, ensure SWIFT/GPI coverage and monitor intermediary involvement.

Manage FX and liquidity:

• Use forwards or swaps to reduce exposure to RMB fluctuations.
• As peak in-bound and out-bound movement windows periodically shift, stay alert to capital control changes.

Explore digital settlement tools:

• Stay updated on e‑CNY pilots, which may reshape cross-border payments for consumers and small businesses.

Optimise compliance:

• Implement robust KYC/background checks to avoid extra scrutiny.
• Stay current on Chinese AML and data‑privacy regulations, which often slow new receivers.

Also read: Best platforms to receive USD as a freelancer in China

China’s cross‑border payment ecosystem is evolving fast: CIPS enables fast RMB settlements, SWIFT/GPI covers global currencies, and digital yuan R&D continues. However, hurdles like bank processes and currency controls still remain.

By tailoring your approach and choosing the right currency, banking corridor, and risk tools, you can avoid delays and forex shocks.

Combining these with modern platforms like Grey, which helps users create GBP, EUR, and USD accounts, exporters and enterprises have a stronger foothold in one of the world’s largest economies.

‍