What Currency Does China Use? RMB vs CNY vs CNH Explained for Malaysian Businesses [2026]

A plain-language guide to China’s currency and what it means when you pay suppliers from Malaysia.

Key Takeaways

• China’s official currency is the renminbi (RMB), and the yuan is the unit you count in, similar to how the dollar is the unit of the US dollar.
• CNY and CNH are the same currency traded in two markets: CNY onshore inside mainland China, and CNH offshore in hubs like Hong Kong and Singapore.
• Chinese suppliers usually quote and invoice in RMB, so understanding the currency helps you avoid double conversions and unnecessary FX costs.
• Malaysian importers typically pay suppliers through bank telegraphic transfers or a cross-border payments provider, each with different fees and settlement speeds.
• Holding and paying in the Chinese currency through a multi-currency account can reduce conversion steps when you buy from China regularly.

China uses the renminbi (RMB), and its unit is the yuan. If you import from China or source on 1688, you will also see the codes CNY and CNH, which cause most of the confusion. This guide explains what currency China uses, how RMB, CNY and CNH relate, and which one matters when a Malaysian business pays Chinese suppliers.

What currency does China use?

China uses the renminbi as its official currency, and the yuan is the unit of that currency. Renminbi, often shortened to RMB, means “people’s currency”, while yuan is the denomination you actually count, so a price of 100 yuan is recorded as RMB 100.¹ Both names refer to the same money.

The renminbi is one of the world’s most-used currencies and sits in the International Monetary Fund’s Special Drawing Rights basket, which reflects its growing role in global trade.² For a Malaysian importer, the practical point is simple: your Chinese supplier prices goods in this currency, so you need to understand it before you pay.

What is RMB?

RMB stands for renminbi, the official name of the currency issued by the People’s Bank of China (PBOC). Think of renminbi as the currency system and yuan as the unit within it. RMB is an umbrella term that covers the currency wherever it trades, whether inside China or abroad.³

The renminbi entered circulation in the 1950s and has since become central to Malaysia–China trade, which spans electronics, machinery, textiles and consumer goods sourced through platforms such as 1688 and Alibaba. When you read a supplier quote in “yuan” or “RMB”, you are looking at the same currency.

Is RMB the same as CNY?

RMB and CNY refer to the same currency, but they are used differently. RMB is the everyday name, while CNY is the official ISO currency code used in payment systems and bank messages.⁴ When your bank or payments provider processes a transfer to China, it will normally show CNY as the code.

So there is no need to choose between “RMB” and “CNY” as if they were separate currencies. They describe one currency, with CNY being the formal code you will see on invoices, converters and transfer confirmations. The distinction that actually affects cost is between CNY and CNH, which the next section covers.

CNY vs CNH: what’s the difference?

CNY and CNH are the same renminbi traded in two separate markets. CNY is the onshore yuan traded inside mainland China under the control of the PBOC, which sets a daily reference rate and allows movement within a controlled band.⁵ CNH is the offshore yuan traded outside the mainland in financial centres such as Hong Kong, Singapore and London, where the rate moves freely with supply and demand.⁶

The “H” in CNH originally stood for Hong Kong, where offshore renminbi trading began in 2009.⁷ Because CNY is managed and CNH floats, their exchange rates against other currencies can differ slightly even though the two convert at roughly 1:1 as the same currency.⁸

Features and availability may vary by region and are subject to change. Always verify current offerings directly with each provider before making a decision.

For Malaysian businesses, the takeaway is that a cross-border payment to a Chinese supplier usually settles in the offshore market, so the CNH rate is what shapes your conversion cost, even though CNY remains the code used in the payment itself.⁴

Why does China have an offshore yuan?

China created an offshore yuan to let the renminbi be used in global trade while keeping tight control over money flowing in and out of the mainland. The onshore CNY market operates under capital controls, with limits on how much can be moved across the border without approval.⁹ The offshore CNH market lets foreign businesses trade and settle in renminbi without those mainland restrictions.

This “one currency, two markets” structure balances two goals: promoting international use of the renminbi through CNH, while managing domestic stability and capital flows through CNY.⁶ For you as an importer, it means your supplier payment can be settled offshore in CNH without needing direct access to China’s controlled onshore system.

Which currency should Malaysian businesses use when paying Chinese suppliers?

Malaysian businesses generally pay Chinese suppliers in renminbi (settled as CNH offshore) or in US dollars, depending on what the supplier requests. Many suppliers quote in RMB, and paying in the supplier’s own currency can remove a conversion step for them, which sometimes leads to better pricing.

Paying in USD is still common, but it can create a double conversion: ringgit to US dollars, then US dollars to renminbi, with a margin added at each step.¹⁰ Paying directly in the Chinese currency can avoid that extra conversion, provided your payment method supports RMB settlement into China. The right choice depends on your supplier’s invoice, your payment provider’s supported currencies, and the total cost after FX.

How Malaysian businesses can pay suppliers in China

You have several ways to pay Chinese suppliers from Malaysia, each with trade-offs in cost, speed and paperwork. The main options are bank telegraphic transfers and cross-border payments providers, and the difference between them mostly comes down to FX margin and settlement time.

Consider these factors when choosing how to pay:

1. FX cost. Compare the margin added to the exchange rate, not just the headline fee. A converter such as WorldFirst’s currency converter can help you sense-check the mid-market rate before you commit.
2. Transfer fees. Traditional bank telegraphic transfers can route through intermediary banks, and correspondent banks may deduct a service fee along the way, so the amount received can be less than expected.¹¹
3. Settlement speed. Bank wires through SWIFT can take several business days, while some providers settle same day or next day.¹¹
4. Supplier platform. If you buy on 1688, check whether your provider can pay the platform directly. WorldFirst offers a 1688 supplier payment option for this.
5. Documentation. Cross-border trade payments may need supporting documents such as invoices, so keep your paperwork organised to avoid delays.

For a fuller walkthrough, see the guide on how to pay suppliers on 1688 and the broader guide on how to pay Chinese suppliers.

How WorldFirst simplifies payments to China

WorldFirst is a payments provider that helps Malaysian businesses pay Chinese suppliers through a multi-currency business account and direct payments to sourcing platforms. You can hold, convert and send funds in the Chinese currency, which reduces the conversion steps involved when you buy from China regularly.

Key features relevant to China sourcing include a multi-currency World Account that lets you hold and manage multiple currencies, and payments to 1688 suppliers. WorldFirst supports holding 20+ currencies and sending to 100+ currencies across 200+ countries and regions, reflecting the Malaysian product configuration.

WorldFirst is regulated by Bank Negara Malaysia and backed by Ant Group (Ant International), with tri-lingual support in English, Chinese and Malay. Opening a business account is done online, and applicants should typically prepare business registration documents, company director identification and business verification information. There is no monthly account fee, and pricing is pay-as-you-go.

How WorldFirst compares to XTransfer for China payments

XTransfer is a China-focused cross-border payments provider that many importers use for supplier payments and CNY settlement. On its own website, XTransfer states that it offers zero account-opening fees and zero transaction fees, with new users eligible for a foreign-exchange settlement quota of up to RMB 200,000.¹² XTransfer lists a Kuala Lumpur office and describes support for payments to China-based suppliers.¹³

XTransfer’s public exchange rate pages do not disclose a single fixed FX margin for MYR to CNY payments, noting instead that rates vary with market conditions.¹² When comparing the two providers, look at the FX margin, per-transfer fees and settlement speed for your specific corridor rather than headline “zero fee” claims, since FX margin is often where the real cost sits. Always confirm current pricing on each provider’s own site before deciding.

Note: Features and availability may vary by region and are subject to change. Always verify current offerings directly with each provider before making a decision.

Fees checked in July 2026. Pricing, eligibility, and product features may change over time. Always confirm the latest information directly with the provider.

FAQ

How much is 1 yuan worth in ringgit? One Chinese yuan was worth roughly RM0.60 in mid-July 2026, meaning RM1 bought about 1.66 yuan.¹⁴ Exchange rates move constantly with the market, so treat this as indicative only and check a live converter before you send a payment. The rate you actually receive also depends on your provider’s FX margin and any transfer fees.

How much is USD 100 in Chinese yuan? The exact amount changes with the daily market rate, so USD 100 converts to a slightly different yuan figure each day. To get a current estimate, use a live currency converter and enter USD 100 against CNY. Remember that paying a Chinese supplier via US dollars can involve two conversions, which may add cost compared with paying in renminbi directly.

Is it possible to hold Chinese yuan in a business account in Malaysia? Yes, some multi-currency business accounts let Malaysian businesses hold and manage the Chinese currency alongside ringgit and other currencies. Holding renminbi can reduce repeated conversions if you pay Chinese suppliers regularly. Check which currencies a provider supports and confirm any fees for holding or converting before you open an account.

What happens if I pay a Chinese supplier in the wrong currency? If you pay in a currency your supplier did not request, the funds may be converted on their side, sometimes at a less favourable rate, or the payment could be delayed. Always confirm the currency and account details on the supplier’s invoice first. Matching the invoice currency helps the payment arrive correctly and reduces avoidable FX costs.

Can I pay 1688 suppliers directly from Malaysia? Yes, you can pay 1688 suppliers from Malaysia using a payments provider that supports the platform. This can be simpler than arranging separate bank transfers for each order. Confirm that your provider connects to 1688, check the applicable fees, and keep your order and invoice records ready in case documentation is requested.

Why do Chinese suppliers quote prices in RMB? Chinese suppliers quote in RMB because it is their domestic currency, so pricing in renminbi avoids passing FX risk to themselves. When you pay in RMB, you take on the conversion, but you may also gain clearer pricing and remove a conversion step on the supplier’s side. Compare the total cost in ringgit before deciding which currency to pay in.

Conclusion

Knowing what currency China uses, and how RMB, CNY and CNH fit together, helps you pay Chinese suppliers with less confusion and fewer unnecessary conversions. Once you understand the currency, the next step is choosing a payment method that keeps FX costs transparent and settlement reliable. If your business imports from China regularly, a multi-currency business account can make paying suppliers more straightforward.

Sources

1. https://statrys.com/blog/cnh-vs-cny-differences-chinese-renminbi
2. https://www.xtransfer.com/tools/en/exchange-rate/myr-to-cny
3. https://www.sc.com/en/news/corporate-investment-banking/what-is-the-renminbi-and-why-rmb-internationalisation-matters/
4. https://www.sc.com/en/news/corporate-investment-banking/what-is-the-renminbi-and-why-rmb-internationalisation-matters/
5. https://statrys.com/blog/cnh-vs-cny-differences-chinese-renminbi
6. https://statrys.com/blog/cnh-vs-cny-differences-chinese-renminbi
7. https://blog.currencycloud.com/the-difference-between-cny-and-cnh
8. https://www.cashbackisl.com/en/what-exactly-is-offshore-rmb-cnh-how-does-it-differ-from-onshore-rmb-cny/
9. https://corporate.visa.com/en/products/visa-direct/blog/the-difference-between-cny-and-cnh.html
10. https://aspireapp.com/hk/blog/cnh-vs-cny
11. https://www.xtransfer.com/transfer/managing-supplier-payments-via-cross-border-transaction-payments
12. https://www.xtransfer.com/tools/en/exchange-rate/myr-to-cny
13. https://www.xtransfer.com/about-us/company
14. https://www.xe.com/currencyconverter/convert/?Amount=1&From=MYR&To=CNY

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.