A guide for Pakistan and Bangladesh businesses on how to send money to China for suppliers, freight forwarders and other business expenses
Key takeaways
- South Asia businesses face specific challenges when sending money to China, including slow SWIFT settlements, high FX markups, and strict outward remittance controls
- SWIFT bank wires, international cards and multi-currency accounts are the main options for sending money to China
- A multi currency account like the World Account from WorldFirst holds CNH, USD and other currencies–allowing businesses to send payments to China at competitive conversion rates
For a Pakistan or Bangladesh business sourcing from China, the payment process is often more complicated than the sourcing itself. Chinese suppliers invoice in CNH or USD, freight forwarders typically bill in USD, and outward remittances from South Asia pass through strict central bank controls. On top of that, the gap between the FX rate your bank gives you and the mid-market rate can quietly take a big chunk of each payment
This guide covers the challenges South Asia businesses face when sending money to China and the main payment methods available
Challenges of sending money to China from South Asia
Before looking at the methods themselves, understanding the specific challenges helps you pick the right one for your business.
Slow SWIFT settlement times: International wire transfers from Pakistan or Bangladesh to China typically route through intermediary banks, taking 2 to 5 business days to settle. For a time-sensitive supplier deposit or an urgent freight payment, this delay can push out production and shipping timelines.
High FX markups and hidden fees: South Asia banks typically add markup to the mid-market rate on PKR or BDT to USD conversions. Intermediary banks in the SWIFT chain often deduct additional fees from the transferred amount.
Documentation and record-keeping requirements: Pakistan importers filing with FBR need accurate documentation of inward and outward remittances. Clean records of payments through approved banking channels matter for both tax compliance and future export regime eligibility.
Currency confusion between CNY and CNH: China operates two parallel yuan currencies: onshore CNY (within mainland China) and offshore CNH (traded outside China). Suppliers often prefer one over the other, and sending the wrong currency can delay or reject the payment.
Multiple payment destinations in a single order: A typical import involves a supplier payment, a freight forwarder payment, and sometimes a sampling or inspection fee. Running all of these through SWIFT wires means paying wire fees and FX markups several times per order.
Methods to send money to China from South Asia
Bank wire transfers (SWIFT)
The traditional route for sending money to China is a SWIFT wire transfer initiated through your Pakistan or Bangladesh bank. The main benefits are familiarity, high transaction limits and strong documentation trails for central bank compliance.
SWIFT transfers typically take 2 to 5 business days, carry transaction fees, pay correspondent bank fees along the route, and apply bank FX markups of 2% to 5%. For regular supplier and freight payments, these costs add up quickly.
International credit and debit cards
Some Chinese suppliers accept credit or debit card payments through payment links. Alibaba and AliExpress accept international cards directly on their platforms, and most freight forwarders also accept card payments.
But card networks typically charge 2% to 4% in cross-border fees, FX markups add another layer, and 1688.com (the Chinese domestic wholesale marketplace) largely does not accept international cards at all.
Multi-currency accounts
A multi-currency account holds CNH, USD and other currencies in one platform. You can convert PKR, BDT or any held currency into CNH or USD and send payments to Chinese suppliers, freight forwarders and service providers at competitive FX rates, with faster settlement than SWIFT.
Send money to China with a World Account
The World Account is a multi-currency account from WorldFirst, built for cross-border businesses. Here is how it supports South Asia businesses sending money to China for suppliers, freight forwarders and other business expenses:
Local receiving details in 15+ currencies including USD, GBP, EUR, SGD, AUD and CNH. Collect international sales in the matching currency and use the balance to pay China-based counterparties directly without round-tripping through PKR or BDT.
Send payments to China in CNH or USD by converting PKR, BDT or held foreign currency to CNH at competitive rates and send to the recipient’s bank account
Pay freight forwarders and shipping agents directly from a USD balance without converting through PKR or BDT first.
Settle other China-related business expenses whether its factory audits, inspection services, sourcing agent commissions, product sampling fees or photography services.
Lock in exchange rates with forward contracts for a future payment, protecting your margin against FX movement between order placement and payment date (subject to eligibility).
Pay 1688.com suppliers through World Pay, the authorised international payment provider. South Asia buyers can pay 1688 suppliers in CNH directly from the World Account without opening a Chinese bank account.
Spend with the World Card by issuing up to 20 Mastercard-powered virtual cards at zero issuance cost. No FX fees when paying in any of the 15 supported currencies, provided sufficient balance is held in the transaction currency.
Zero account opening fees and no monthly maintenance fees.
Fully online setup with no branch visits.
FAQs
1. Do I need a Chinese bank account to pay suppliers in China from South Asia?
No. South Asia businesses do not need a Chinese bank account to pay suppliers or freight forwarders in China. Opening one is practically difficult without a registered Chinese entity. A multi-currency account like the World Account lets you hold CNH and send payments directly from your base country.
2. Can I pay Chinese suppliers in PKR or BDT?
No. Chinese suppliers typically invoice in CNH or USD. Paying in PKR or BDT would require the supplier to handle the conversion, which they typically pass back to you through higher pricing.
3. What is the difference between CNY and CNH?
CNY is onshore Chinese yuan, used within mainland China. CNH is offshore yuan, traded outside mainland China. Suppliers often prefer one over the other based on their account setup. Multi-currency accounts typically hold and send CNH, which is accepted by most Chinese suppliers for international payments.
4. Can I pay freight forwarders in China through the World Account?
Yes. Freight forwarders in China typically bill in USD. A USD balance in the World Account can be used to pay freight forwarder invoices directly, avoiding the FX markup of a bank wire.
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.
