🇨🇳 Pay Suppliers in China
Pay Chinese manufacturers for textiles, electronics, machinery, and consumer goods
T+0 (2.3s avg within Unicorn network). Save 83% vs traditional banks.
Why China payments cost more than they should
China is the world's largest exporter, which means millions of businesses send payments to Chinese suppliers every month. Yet despite this volume, paying a Chinese supplier remains one of the most expensive cross-border payment corridors for UK, Canadian, and American importers.
The reason isn't the currency conversion itself. GBP/CNY and USD/CNY are liquid pairs with tight interbank spreads. The cost comes from three places most businesses never examine: the settlement route your bank chooses, the correspondent banking chain your payment travels through, and the compliance overhead each intermediary adds.
A typical bank-routed payment from the UK to China passes through two or three intermediary banks, each adding their own FX margin and handling fee. By the time the payment reaches your supplier's account in Shenzhen or Guangzhou, you've paid 2-4% above the mid-market rate — and your supplier has waited 3-5 business days for funds to clear.
For an importer processing £100,000 monthly to Chinese suppliers, that's £2,000-£4,000 per month in unnecessary FX costs. Over a year, that's £24,000-£48,000 that could have stayed on your balance sheet. Learn how to calculate what your bank actually charges in our guide to audit your bank's FX markup.
How payments to China actually work
Payments to China settle through one of two systems: SWIFT or CIPS (the Cross-Border Interbank Payment System).
SWIFT is the traditional route. Your payment instruction travels from your bank through one or more correspondent banks before reaching the beneficiary bank in China. Settlement typically takes 2-5 business days. Each intermediary bank in the chain may deduct fees or apply their own exchange rate, which is why the amount your supplier receives often differs from what you expected.
CIPS is China's own cross-border payment infrastructure, launched in 2015 and now processing over $80 billion daily. CIPS settles CNY payments directly through participating banks, often bypassing the correspondent banking chain entirely. Settlement is faster — typically same-day or next-day — and costs are lower because there are fewer intermediaries handling your payment.
Not every FX provider offers CIPS routing. Many default to SWIFT because that's what their banking infrastructure supports. If your provider can route through CIPS-connected banks, your China payments will typically settle faster and cost less. The impact of settlement speed on your working capital is significant — see our analysis of how T+2 settlement costs drain working capital.
Payment corridors we support for China
GBP to CNY — The primary corridor for UK importers buying from Chinese manufacturers. Competitive rates on conversions from £10,000 upward. Settlement via SWIFT or CIPS-connected banking partners. See China to UK payments for details on inbound CNY to GBP conversions.
USD to CNY — The world's highest-volume trade corridor. Standard for businesses invoiced in US dollars by Chinese suppliers or those holding USD accounts. See China to US payments for the reverse corridor.
CAD to CNY — Direct corridor for Canadian importers. Unicorn Currencies is a FINTRAC registered MSB (C100000159) and Bank of Canada RPAA registered, meaning your Canada-to-China payments are processed through a fully regulated Canadian entity.
EUR to CNY — For European businesses importing from China or managing EUR-denominated supply chains with Chinese manufacturing partners. See China to Germany payments for the EU's largest China trade corridor.
AED to CNY — The UAE is one of China's largest re-export partners. We support AED to CNY conversions for businesses operating through Dubai's free trade zones.
China to Hong Kong — For regional treasury and re-export flows. See China to Hong Kong payments for details.
China payment compliance: what your provider should handle
Purpose of payment codes. Chinese banks require specific purpose-of-payment codes on incoming international transfers. An incorrect code can delay settlement by days or cause the payment to be returned. Your FX provider should know which codes apply to trade payments, service fees, and other common transaction types.
Beneficiary documentation. For payments above certain thresholds, the beneficiary bank may require supporting documentation — invoices, contracts, or proof of the underlying trade. Your provider should advise you on documentation requirements before you initiate the payment, not after it's been held.
SAFE regulations. China's State Administration of Foreign Exchange (SAFE) monitors inbound foreign currency flows. Payments that don't match the beneficiary's declared business activity can trigger holds or additional verification. This is routine, not a red flag, but it requires a provider who understands the process and can liaise with banking partners to resolve holds quickly.
Industries we serve in the China corridor
Our China payment corridor is used most heavily by businesses in manufacturing import, electronics and components distribution, textile and garment sourcing, automotive parts procurement, consumer goods import, and e-commerce fulfilment. We understand the payment patterns and compliance requirements specific to these sectors.
Frequently asked questions
We also support inbound payments from China. See our guide to receiving money from China for details on CNY to GBP, CNY to CAD, and CNY to USD conversions.
Unicorn Currencies Limited is a FINTRAC registered Money Services Business (MSB C100000159) and Bank of Canada RPAA registered payment service provider.
What you need to send money to China
What details do I need to pay suppliers in China?
To pay suppliers in China you need the recipient's CNAPS Code (12-digit China National Advanced Payment System code), plus account number and beneficiary name. Payments typically settle in 2.3 seconds and cost 0.5% FX spread + £5 per payment.
How fast are payments to China?
Payments to China settle in an average of 2.3 seconds when using local rails such as Alipay, compared to 2–3 days via traditional SWIFT.
How much does it cost to send money to China?
Unicorn Currencies charges 0.5% FX spread and £5 per payment. You save about 83% versus banks (e.g. £505 vs £3030 on a £100k transaction).
Cost Comparison: Banks vs Unicorn Currencies
See how much you save on £100,000 payment to China
| Cost Item | Traditional Banks | Unicorn Currencies |
|---|---|---|
| FX Spread | 3% | 0.5% |
| Payment Fee | £30 | £5 |
| Total Cost (£100,000) | £3,030 | £505 |
| YOUR SAVINGS | N/A | £2,525 (83%) |
| Settlement Time | 2-3 days (SWIFT) | T+0 (2.3s avg within Unicorn network) |
Local Payment Rails in China
Avoid expensive SWIFT fees. We use local payment systems in China for faster, cheaper settlement.
Alipay
Instant mobile payments, widely accepted by suppliers
UnionPay
China's national card network, lower fees than SWIFT
CIPS (Cross-border Interbank Payment System)
China's alternative to SWIFT, faster settlement
Who Uses This Payment Corridor
Key Industries in China
- Textile Manufacturing
- Electronics
- Consumer Goods
- Machinery
- Apparel
Average Transaction: £50k-£200k
Typical Monthly Volume: £300k-£3M
Popular Supplier Types
- Textile manufacturers (Guangzhou, Shenzhen)
- Electronics suppliers (Shenzhen, Shanghai)
- Machinery manufacturers (Ningbo, Dongguan)
- Consumer goods factories (Yiwu, Foshan)
What You Need to Know: China Payments
Regulatory Considerations
- SAFE (State Administration of Foreign Exchange) compliance required
- Commercial invoices must match payment purpose
- Dual-currency accounting may be needed for large volumes
- Capital controls apply to CNY flows
Payment Tips for China
- Avoid SWIFT fees (3-4%) by using local rails like UnionPay or CIPS
- Schedule payments before Chinese holidays (CNY week shuts down)
- Use freight forwarder as commercial invoice reference
- Lock FX rates before placing large orders to protect margins
Why Choose Unicorn Currencies for China Payments
Local Rails, Not SWIFT
We use Alipay and other local systems in China. Avoid 3-4% SWIFT fees and 2-3 day delays.
83% Lower Costs
Save £2,525 on every £100,000 payment. On £300k-£3M monthly volume, save up to £75,750 annually.
Bank of Canada Supervised
Registered Payment Service Provider (PSP) and FINTRAC MSB. Full regulatory compliance for China payments.
Real-Time FX Tracking
Upload supplier invoices in CNY. See live P/L as GBP/CNY rates move. Lock rates for 15 seconds before committing.
Frequently Asked Questions: China Payments
What details do I need to pay suppliers in China?
To pay suppliers in China you need the recipient's CNAPS Code (12-digit China National Advanced Payment System code), plus account number and beneficiary name. Payments typically settle in 2.3 seconds with Unicorn Currencies at 0.5% FX spread and £5 per payment.
How fast are payments to China?
Payments to China settle in an average of 2.3 seconds when using Unicorn Currencies' local rails (e.g. Alipay), compared to 2–3 days via traditional SWIFT.
How much does it cost to send money to China?
Unicorn Currencies charges 0.5% FX spread and £5 per payment for China. You save about 83% versus banks (e.g. £505 vs £3030 on a £100k transaction).
How long does a payment to China take?
Settlement typically takes 1-3 business days depending on the corridor, payment method, and beneficiary bank. Payments routed through CIPS-connected partners often settle same-day or next-day.
What information do I need to pay a Chinese supplier?
Beneficiary name (in English and Chinese characters where possible), bank name and branch, bank account number, SWIFT/BIC code, and the purpose of payment. For CIPS-routed payments, additional identifiers may be required.
Is there a minimum payment amount?
Unicorn Currencies serves businesses processing £1M+ in annual FX volume. Individual payments typically start at £10,000, though this varies by corridor and client agreement.
Can I lock in a rate for future China payments?
Yes. Forward contracts allow you to fix an exchange rate for payments due in the future — useful for importers with fixed supplier payment schedules or those managing seasonal procurement cycles.
£1,000,000+ Paying Suppliers in China? Save 83%
Enterprise treasury for import/export businesses with T+0 (2.3s avg within Unicorn network) settlement to China
For businesses with high annual FX volume. Not consumer transfers.