How to Pay Suppliers in China and Hong Kong: Currencies, Payment Routes and the Real Cost

The short answer: Most businesses pay Chinese suppliers by bank transfer. The money goes to the supplier’s business account in mainland China, in CNY or USD, or to a Hong Kong account in HKD or USD. Before you choose how to send it, settle three things:

• Currency: confirm with the supplier which currency and which account they want paid into.
• Route: choose between a traditional SWIFT wire and a provider that routes through local or regional rails such as CIPS (China) or CHATS (Hong Kong).
• Cost: compare quotes on what the supplier actually receives, not on the transfer fee. The exchange-rate markup and intermediary deductions usually cost more than the fee itself.

This guide is for importers, procurement teams and finance teams who pay Chinese manufacturers and wholesalers regularly. It covers how each option works, how to calculate the true cost, and what to check before every payment.

Why paying a Chinese supplier is harder than paying a domestic one

A domestic supplier payment involves one currency, one payment system and usually one fee. A payment to China can involve:

• Two or three currency conversions. A Mexican importer paying a CNY invoice by bank wire may go from MXN to USD at their bank, then from USD to CNY at the supplier’s bank. Each conversion has its own margin.
• A chain of banks. SWIFT wires often pass through one or more correspondent banks, and each can deduct a fee on the way.
• Document checks at the receiving end. China runs foreign-exchange controls. Chinese banks review trade documents for incoming goods payments, and the State Administration of Foreign Exchange (SAFE) sets those review rules. For single goods-trade payments over USD 100,000, banks may check the transaction against customs declaration records (SAFE).

None of this is a reason to avoid sourcing from China. It does mean that a “cheap” transfer can arrive short, late or held for documents. When the supplier waits on the money, the goods wait too.

Step 1: Agree on the currency, and know which yuan you mean

Ask before you pay, and get the answer written into the purchase order. Chinese suppliers typically accept one of these:

Two practical rules:

1. Match the invoice currency. Wise, for example, tells customers to send USD if the contract or invoice is in USD, rather than converting to CNY. A mismatch can create questions at the receiving bank.
2. Know who bears the exchange risk. If you pay in USD, the supplier converts the money to CNY at its own bank and may price that risk into your unit costs. If you pay in RMB, you take on the conversion yourself, and you can see exactly what it costs.

Hong Kong is a separate banking system. A Hong Kong account uses different bank details and payment systems from a mainland account. The Hong Kong dollar is linked to the US dollar within a band of 7.75 to 7.85 HKD per USD (HKMA), so USD-to-HKD exchange risk is limited. The conversion margin still matters.

• Check your route. Decaf publishes its supported currencies and payout rails for paying suppliers in China and Hong Kong. Check them before you agree a currency with your supplier.

Step 2: Choose a payment route

Traditional bank wire (SWIFT)

How it works: Your bank sends a SWIFT message, and the money may move through one or more correspondent banks before reaching the supplier.

Strengths: Almost every bank supports it, and suppliers are familiar with it.

Weaknesses:

• Timing depends on the banks in the chain. This can take several business days.
• The exchange rate your bank applies often contains a margin that never appears as a separate fee.
• Intermediary deductions can leave the supplier short.

CIPS (China’s Cross-Border Interbank Payment System)

What it is: CIPS is China’s clearing system for cross-border renminbi payments. It launched in 2015. By mid-2026 its average daily value was in the hundreds of billions of RMB.

Why importers should care: If your supplier wants CNY, the payment will usually settle through a bank connected to CIPS. Some providers only send CNY to CIPS member banks. A provider that pays out over CIPS can avoid parts of the correspondent chain.

What you need: The supplier’s exact registered company name, account number, bank name and SWIFT code. You also need supporting trade documents.

Hong Kong local transfer (CHATS)

What it is: CHATS is Hong Kong’s real-time interbank settlement system for HKD and USD.

Who can use it: Paying a Hong Kong supplier through CHATS normally requires a provider or bank account that has access to Hong Kong local payments.

Payment platforms and multi-currency accounts

How they work:

1. You fund an account locally, for example by ACH, SEPA or SPEI.
2. The provider converts the money.
3. The provider pays the supplier through its own network of local and international rails.

What to watch: The usual promise is a lower FX margin and fewer intermediaries. Coverage varies widely, however, and so do funding methods and pricing. Check that the provider supports your specific funding currency and your supplier’s destination currency and rail.

Step 3: Calculate the real cost of each payment

A quote has three cost layers:

1. The transfer fee: a flat or percentage charge you can see.
2. The FX markup: the gap between the rate you get and the mid-market rate. On a large invoice, this is usually the biggest cost, and many banks don’t show it as a fee.
3. Charges along the route: SWIFT fees depend on the charge instruction you choose:

• OUR: you pay all charges.
• SHA: you pay your bank’s charge, and downstream charges come out of the transfer.
• BEN: the supplier pays everything. Under SHA or BEN, your supplier may receive less than the invoice amount and ask you to make up the difference. That can mean a second wire with a second fee.

The only comparison that matters: How much do I pay, in my currency, for my supplier to receive the exact invoice amount?

Hypothetical example: one CNY invoice, two quotes

• Invoice: CNY 355,000
• Assumed mid-market rate: 7.10 CNY per USD, so the invoice is worth USD 50,000.00 at mid-market