Living as an expat in China often comes with the need to send money back home—whether for family support, savings, or investments.
However, navigating remittance options can be challenging due to varying fees, exchange rates, and regulations.
This guide provides a detailed comparison of the best methods for sending money from China, helping you save time and money while staying compliant with local laws.
Why It’s Important to Choose the Right Option
When selecting a remittance method, consider these three key factors:
- Transaction Fees: These can significantly reduce the amount your recipient receives.
- Exchange Rates: Even small fluctuations can impact the transfer value.
- Processing Time: Some transfers are instant, while others may take several days.
By understanding these aspects, you can make informed decisions and optimize your remittance experience.
Comparing Remittance Options
Below is a comparison of the most popular remittance methods for expats in China:
| Method | Fees | Exchange Rates | Processing Time | Best For |
|---|---|---|---|---|
| Bank Transfers | High (e.g., $20–$50) | Often include hidden margins | 3–7 business days | Large transfers requiring high security |
| Wise | Low (e.g., 0.5–1%) | Real-time mid-market rates | 1–2 business days | Transparent, low-cost transfers |
| SkyRemit | Competitive (varies) | Competitive rates | Instant to 1 day | Transfers to Southeast Asia |
| Western Union | High for instant transfers | Slightly marked-up rates | Instant to 1 day | Cash pickups and global coverage |
| Cryptocurrency | Low (network fees only) | Market-dependent | Minutes | Tech-savvy users with crypto knowledge |
| PayPal | Moderate (e.g., 2–4%) | Transparent but marked-up | 1–3 business days | Transfers to countries with PayPal access |
1. Bank Transfers: A Secure but Costly Option
Overview: Traditional bank transfers through institutions like ICBC, Bank of China, and HSBC are a reliable choice for international money transfers.
Pros:
- High security and direct transfers to bank accounts.
- Wide coverage for multiple currencies and destinations.
Cons:
- High fees and unfavorable exchange rates.
- Slow processing times (3–7 business days).
Tip: Use tools like XE or OANDA to compare the bank’s exchange rate with the mid-market rate before proceeding.
2. Digital Money Transfer Services: Speed and Transparency
Top Providers:
- Wise: Known for its real-time mid-market rates and low fees. Ideal for transparent, cost-effective transfers.
- SkyRemit: Popular for transfers to Southeast Asia, offering fast and secure services.
- Western Union & MoneyGram: Trusted for decades, with extensive global coverage and cash pickup options.
Pros:
- Lower fees compared to banks.
- Faster processing times (instant to 2 days).
Cons:
- Higher fees for instant services (e.g., Western Union).
External Links:
3. Cryptocurrency: The Tech-Savvy Option
Overview: Cryptocurrencies like Bitcoin and Ethereum are gaining traction as alternative remittance methods.
Pros:
- Low fees and no exchange rate markups.
- Fast transactions (minutes) with global access.
Cons:
- Volatility can impact the transferred amount.
- Requires knowledge of crypto wallets and adherence to China’s strict regulations.
Tip: Use platforms like Binance or Coinbase for secure transactions, but ensure compliance with local laws.
4. PayPal: A Trusted Global Platform
Overview: PayPal offers a reliable way to send money to over 200 countries, with options for PayPal-to-PayPal transfers or direct bank deposits.
Pros:
- Intuitive platform with transparent fees.
- Supports multiple currencies and payment methods.
Cons:
- Withdrawal fees for recipients.
- Both sender and recipient must have PayPal accounts.
External Link: PayPal
Tips for Expats: Maximizing Your Remittance Efficiency
- Understand Local Regulations: China enforces strict rules on international transfers, including a $50,000 annual limit for individuals. Ensure you comply with these regulations to avoid penalties.
- Compare Fees and Rates: Use online calculators provided by services like Wise or SkyRemit to compare real-time costs.
- Plan Transfers: If speed is not critical, opt for methods with lower fees but longer processing times.
- Set Up Alerts: Use exchange rate trackers like XE to send money when rates are favorable.
Final Thoughts
Whether you prioritize speed, cost, or convenience, China offers a range of remittance options to meet your needs.
While traditional bank transfers provide security, digital platforms like Wise and SkyRemit are emerging as top choices for expats due to their affordability and ease of use.
By understanding the pros and cons of each method and staying informed about local regulations, you can make smarter financial decisions.