China's Foreign Exchange Control: A Comprehensive Guide to Regulations and Limits
Benjamin Clark - 2025-03-19 10:59:20.0 2176
Hong Kong is the world's largest offshore RMB center, with a market size exceeding 600 billion RMB. Unlike Hong Kong’s liberal economic system, China has stricter foreign exchange controls, including limits on carrying foreign currency across borders and withdrawing cash overseas. This article provides an overview of China’s foreign exchange control regulations and monetary limits to help you navigate remittances in and out of China.
If you need to send money to family or friends in mainland China, consider using Panda Remit. It allows you to transfer funds not only to bank accounts but also directly to Alipay accounts, offering a convenient and seamless solution.
China's Foreign Exchange Control Regulations
China generally prohibits the circulation of foreign currencies within its domestic market and imposes control measures on foreign exchange transactions and international settlements. However, foreign exchange controls have gradually loosened since the late 2000s. The mandatory settlement system was abolished, allowing domestic institutions and individuals to retain foreign exchange income abroad or remit it back to China, subject to conditions and deadlines set by China’s foreign exchange administration.
China's foreign exchange regulatory body also monitors the domestic exchange rate and foreign exchange market, adjusting policies based on market changes and monetary policy needs.
Foreign exchange, as defined by China’s regulations, includes:
- Foreign currency cash (banknotes and coins)
- Foreign currency payment instruments (checks, deposit certificates, bank cards, etc.)
- Foreign currency securities (bonds, stocks, etc.)
- Special drawing rights (SDRs)
- Other foreign exchange assets
Foreign Exchange Limits in China
Both foreign entities and individuals investing in China, as well as Chinese institutions and individuals investing abroad, must register with the foreign exchange control authority. According to the 2018 revision of the People’s Bank of China Notice on Large Transactions Reporting for Non-Banking Payment Institutions, effective January 1, 2019, transactions exceeding the following limits require reporting:
| Transaction Type | Limit |
|---|---|
| Cash transactions (including exchange, remittance, and withdrawals) | RMB 50,000 or USD 10,000 equivalent |
| Corporate transfers | RMB 2 million or USD 200,000 equivalent |
| Domestic personal transfers | RMB 500,000 or USD 100,000 equivalent |
| Cross-border personal transfers | RMB 200,000 or USD 10,000 equivalent |
Personal Foreign Exchange Quotas
Currently, Chinese residents are entitled to an annual personal foreign exchange quota of USD 50,000, which can be exchanged upon presenting a valid ID. However, beyond currency exchange, daily life often involves other foreign currency transactions. Below are the most common transaction limits:
| Transaction Type | Limit |
|---|---|
| Annual personal exchange quota | USD 50,000 per year |
| Overseas card or mobile payments | Not subject to quota |
| Overseas cash withdrawals | RMB 10,000 per day, RMB 100,000 per year |
| Carrying cash across borders | USD 5,000 equivalent (USD 5,000-10,000 requires approval) |
⚠️ Legitimate foreign exchange purchases are not restricted as long as proper documentation is provided (e.g., tuition fees, medical bills). Banks process such transactions based on actual needs.
RMB Outflow Restrictions
Currently, individuals can carry up to RMB 20,000 or USD 5,000 per trip. If carrying USD 5,000-10,000 equivalent in foreign currency, an Exit Foreign Exchange Permit from designated banks is required. Instead of carrying cash, you may consider withdrawing funds abroad using a Chinese bank card, which has a daily withdrawal limit of RMB 10,000 and an annual limit of RMB 100,000. China also prohibits mailing RMB across borders.
It’s important to note that authorities track cash outflows based on travel frequency. Splitting large amounts into multiple trips does not bypass restrictions. Below are the limits for frequent travelers:
| Frequency | Limit |
|---|---|
| First exit within 15 days | USD 5,000 equivalent |
| Second or subsequent exit within 15 days | USD 1,000 equivalent |
| Second or subsequent exit within the same day | USD 500 equivalent |
RMB Import Limits to Hong Kong
China’s outbound RMB limit is RMB 20,000. In Hong Kong, if you carry more than HKD 120,000 worth of currency or cash-equivalent items, a written customs declaration is required.
First-time violators of the reporting regulation (without prior money laundering or terrorist financing convictions) may resolve the case by paying a penalty of HKD 2,000. Otherwise, cases may be handled under criminal law, with penalties of up to HKD 500,000 in fines and two years’ imprisonment.
Convenient RMB Transfers with Panda Remit
If you need to transfer HKD to a mainland China bank account, consider using Panda Remit. With Panda Remit, you can transfer funds up to HKD 30,000 per transaction.
For those working in China, you can also use Panda Remit to send your earnings back to Hong Kong. The platform provides a seamless RMB remittance service, allowing you to transfer your income to Hong Kong or other supported recipient countries without the hassle of excessive paperwork.
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