How to Transfer Money from UK to China
UK to China Guide
Summary
Relations between China and the UK are currently cooperative, friendly, and close. The two countries have a long history of bilateral agreements. The UK was the first country to recognize the new Republic of China, in 1954. Foreign currency controls make it relatively challenging to transfer money from UK to China, especially for business purposes. Individuals can exchange up to a maximum of US$50,000 of Chinese currency each year.
Visas
Citizens of the UK need a visa to travel to mainland China, but do not need a visa to travel to Hong Kong and Macao. For the remaining areas, a visa must be obtained from the Chinese Consulate General closest to you. You should ensure that you do not overstay your time or work illegally while in China. There is heavy monitoring and increased fines for visa violations.
Although a visa for China can be processed within one week it can take longer with the requirement of extra documentation or an interview. It is therefore recommended that UK expats allow at least a month for a Chinese visa application.
Chinese visas are divided into a several categories; courtesy visas, public service visas, diplomatic visas, and ordinary visas. There are multiple types of ordinary visas.
- The C visa is issued to crew members of international transports.
- The D visa is intended for those who want to live in China permanently.
- The F visa is issued to anyone travelling to China for the purposes of exchanges, tours or such related activities.
- The G visa is a transit visa.
- The J1 and J2 visas are issued to members of foreign news teams.
- Anyone travelling to China for vacations or sightseeing is issued an L visa.
- M visas are issued to anyone travelling to China for commercial purposes.
- Q visas are issued to family members who are living permanently in China.
- S visas are for family members of anyone working or living temporarily in China.
- If you will be studying in China you will require an X visa.
- A Z visa is required to work legally in China.
Money transfer regulations in China
It is important to note that there are several restrictions that apply to capital account transfers and foreign direct investments. These vary based on the types of investors and investments. New rules have been implemented since April 2014 that should loosen some of the controls placed on local and foreign firms who want to conduct overseas money transfers across China’s borders. Firms which hold a minimum of US$100 million will be able to transfer large amounts of currency more freely.
The majority of trade with China is settled in US dollars as well as euros, although more recent swap deals allow UK firms to negotiate using the local RMB. This move has been favorable for some merchants who are able to negotiate discounts. It also makes the process relatively faster. Anyone wanting to import to China must apply to the SAFE for foreign currency at the time of an export transaction.
Banking in China
Banking in China is fairly straightforward and expats generally have some international options to choose from. The language barrier may prove an issue in some instances but there are many institutions that offer service options in English. It may be to your benefit to employ the services of a translator or seek the help of a Chinese friend.
Whether you opt for a local or foreign based bank will depend on your individual preferences. Consider that there are pros and cons with each option. Although an international bank such as HSBC or Citibank may be preferable especially if you already have an account with them; they usually require a large minimum balance and access to ATMs may be limited. Local options such as the Construction Bank of China, the Bank of China and the Agricultural Bank of China are usually much more accessible, with ATMs in numerous locations and a lower minimum deposit amount.
To open a bank account in China you will usually only need to present your UK passport and some amount of money as an opening deposit. Particular banks may also demand proof of residence or a copy of your visa.
Differences in taxes between the UK and China
UK nationals living in China for up to five years will have to pay taxes on any income earned within the country as well as any money transferred into China. After five years UK expats will be required to pay taxes on worldwide income. However, you may be eligible for deductions for taxes paid in the UK. The amount of taxes you pay will be dependent on how long you have been living in China. Taxes range between three percent to a maximum of 45 percent and tax laws change frequently. UK expats should consider engaging the services of a tax specialist to assist in dealing with tax issues in China.
Economic relations between the UK and China
Trade between the UK and China reached record levels in 2013, seeing an increase of 8%. According to UK Trade and Investment, exports from the UK went up by 15%. The UK is the most popular region in Europe for Chinese investment. Between 2013 and 2014 inflows of capital from China amounted to more than £8 billion, which safeguarded over 6,000 jobs for UK residents. On the flip side, the UK is the second largest European investor in China. Within the same period, UK investments exceeded $18 billion. The financial services of the UK also happens to be the global leader in offshore RMB trading.
Frequently Asked Questions
Are the money transfer companies shown above safe to use?
Yes, all the companies are safe and fully-regulated money transfer services.
Each are authorised and regulated by the relevant authority such as the Financial
Conduct Authority(FCA) in the UK, FinCEN in the US, FinTRAC in Canada or ASIC in Australia.
How long does an international money transfer take?
The speed of delivery will depend on where the money is being from and to and how
you are sending and receiving the money. Transfers sent using bank to bank transfers
can depend take anywhere from minutes to days and you should check the time estimates
from the relevant provider. Debit and credit card payments sometimes allow for faster
transfers for smaller amounts.
How do I use FXcompared?
First review the comparison results (such as for a table above) for a given amount
of money sending from UK to China. Then select a provider based on
factors such as price, speed, their rating and click the green button to be taken to
their website. From there, you can register and sign up for an account. Once you have
done that and the provider has verified your identity to ensure the money can be send
safely, you will be ready to transfer money.
What payments methods can I use to send money overseas?
The results shown above are typically for bank to bank transfers. It is possible
via some providers to pay in your funds for the transfer via cash, debit or credit
cards as well but this is usually reserved for smaller amounts. Some providers also
give you different options for how the money will be received - to a bank account
(most common), to a debit card, to cash or to a digital or mobile wallet.
What if the price shown above isn’t exactly what I am offered when I try to transfer money?
There can be a number of reasons why the final price you are offered may be different
to that shown in the table above. Exchange rates between two currencies change all
the time and is the most common reason. Additionally, some providers offer different
pricing depending what method you are using to send funds or how the funds will be
received. Others may offer you a premium service for faster payments. In some cases
FXcompared has a special rate with a provider and this is reserved for first time
customers who sign up to the provider starting from FXcompared’s website.
As prices do change often, be sure to confirm the total cost with the provider
before transferring money.
Your Feedback
We welcome all suggestions for improvements. Send us an email at support@fxcompared.com.
Latest Money Transfer News Articles for UK