Learn how businesses in Malaysia can open a Chinese bank, plus the CNH payment route Malaysian businesses can use to pay suppliers in China
Key takeaways
- Opening a Chinese business bank account usually requires registering a local Chinese entity first, which can take several months on its own
- Some Chinese banks may also require in-person branch visits, Mandarin-language paperwork and long approval timelines
- Malaysian businesses that mainly need to pay Chinese suppliers can also send payments in CNH through a payment provider, without opening a mainland Chinese bank account
- WorldFirst supports CNH payments to Chinese suppliers from Malaysia, including payments to 1688.com suppliers through World Pay
Opening a bank account in China as a foreign business or individual is possible, but the requirements depend on the account type and what the business really needs it for.
A Malaysian company setting up a Chinese subsidiary with local staff and tax obligations has clear operational reasons to open one. But another Malaysian SME that only sources from 1688.com or pays supplier invoices to Chinese vendors may find the process heavier than what is actually needed.
This guide covers how to open a Chinese bank account from Malaysia as a foreigner and the offshore CNH payment route that Malaysian businesses can use to pay Chinese suppliers without needing to open a mainland bank account.
Can a foreigner open a China bank account?
- For individuals, some Chinese banks accept applications from foreigners on the basis of a valid passport, a Chinese phone number and proof of residence or a visa. Requirements vary by bank and even by branch.
- For businesses, Chinese banks generally require a registered Chinese entity, typically a Wholly Foreign-Owned Enterprise (WFOE) or a similar local legal structure, before they will consider a business account application. A personal foreign account is not a workable substitute for business payments, since it does not allow the business to receive corporate payments, pay taxes, or manage supplier relationships at the scale most SMEs need.
The challenges of opening a Chinese bank account
Registering a Chinese entity comes first
A Wholly Foreign-Owned Enterprise (WFOE) or similar structure needs to be registered before the bank account application even begins. Setting up the entity typically involves:
- A registered Chinese business address
- A local legal representative
- Chinese tax registration
- Industry-specific licences where the business activity requires them
The entity setup alone often takes several months, before the bank has even seen the application.
Bank specific requirements can be complex
Different banks in China look for different combinations of official company seals, industry approvals and source-of-funds documentation. Applications can be rejected on the basis of the applicant’s ownership structure, industry or paperwork–sometimes after several weeks of back-and-forth.
Approval timelines are long and hard to predict
Even when the paperwork is in order, approval timelines can stretch from several weeks to several months. During that window, supplier relationships still need to be paid, orders still need to move, and businesses often fall back on third-party remitters at less favourable rates while waiting for the account to become operational.
When a Chinese bank account genuinely makes sense
Even with all the red tape, there are situations where opening a Chinese business bank account is the right call. These typically involve businesses that:
- Are setting up a real operational presence in China with local staff, offices or manufacturing
- Have consistent, high-volume domestic Chinese transactions that would be impractical to run from outside China
If any of these apply, the entity setup and account application are worth the time and cost, because there is no shortcut.
For most Malaysian SMEs that source from Chinese suppliers, pay 1688.com vendors or occasionally settle bills to Chinese partners, these pay not apply.
→ Learn how to open a bank account in China
How WorldFirst supports Malaysian businesses paying China
WorldFirst is an international payments provider, and the World Account is a multi-currency account built for businesses trading across borders. For Malaysian businesses, the World Account supports:
- CNH payments to Chinese suppliers: Send payments in CNH directly to Chinese suppliers from your World Account, without needing a Chinese bank account.
- 1688.com supplier payments through World Pay: World Pay is the authorised international payment provider for 1688.com, letting Malaysian businesses pay 1688 suppliers in CNH directly from the World Account. 1688.com’s buyer protection remains in place.
- USD and MYR accounts for the rest of the business: The World Account also gives Malaysian businesses a USD account for collecting international income, alongside an MYR account for local activity.
Fully online setup, verification typically within a few business days, and access to the account through the WorldFirst dashboard from Malaysia.
FAQs
1. How long does it take to open a Chinese business bank account?
The full process usually takes several months. Registering the underlying Chinese entity (such as a WFOE) alone takes several months, and the bank account application can add several more weeks depending on the bank, industry and paperwork.
2. What is the difference between CNY and CNH?
CNY refers to onshore Chinese yuan, held and traded within mainland China under domestic regulatory rules. CNH refers to offshore Chinese yuan, held and traded outside mainland China. Both represent the same currency, but they trade under different frameworks and at slightly different rates.
This article is intended for informational purposes only and does not constitute legal advice or professional advice. This article should not be regarded as constituting an offer or a solicitation to buy or sell any regulated or financial products or services. WorldFirst makes no representations or warranties regarding the accuracy, completeness, or applicability of the content, and readers are encouraged to consult with legal professionals or other professionals for advice tailored to their specific situation. WorldFirst does not guarantee the accuracy and completeness of this article and expressly disclaims any and all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance on this article.
