Why companies should pay their Chinese suppliers in RMB (instead of USD)
21 December 2021
Why companies should pay their Chinese suppliers in RMB
(instead of USD)
The development of the offshore RMB (CNH) and the subsequent roll-out of USDCNH Futures contracts have been a game changer for non-Chinese companies doing business with suppliers based in mainland China. As a result, an increasing number of companies have already switched their payment currency from USD to RMB.
USD vs RMB payments
Good to know!
There are no restrictions for companies outside China to use offshore RMB as a payment currency.
The procedure to remit a payment in RMB to a Chinese supplier is the same as for USD payments.
Chinese suppliers can issue invoices in RMB without VAT so long as the transaction is a cross-border one.
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